Minister Diamantino Azevedo Announces Final Investment Decision for Block 15 Life Extension Project
Minister of Mineral Resources, Petroleum and Gas, Diamantino Azevedo, delivered a speech during the ceremony announcing the Final Investment Decision for the development of the Kizomba C field, integrated within the Block 15 life extension project. The project will be operated by a consortium comprising Esso, Azule Energy, Equinor, and Sonangol Exploração & Produção, with an investment valued at over $3 billion.
The process, which culminated in the signing of Amendment No. 2 to the Production Sharing Contract in July of this year, establishes the contractual and economic basis for implementing the life extension project of the Block’s production facilities. This aims to recover additional resources, optimize existing infrastructure, and ensure the continuity of production from Kizomba C within a framework of greater operational efficiency and sustainability.
The National Oil, Gas and Biofuels Agency (ANPG), as the national concessionaire and entity promoting the balance between State and operator interests, plays an important role in the process intended to give substance to the Incremental Production Program, designed by the overseeing Ministry to reverse the trend of production decline.
Diamantino Azevedo considered the act “a decisive milestone” in the development trajectory of Kizomba C, as the final investment decision enables the continuation of operations at this important asset, thereby helping to mitigate production decline, which he emphasized represents “one of the biggest current challenges” for the National Oil Industry.
This decision by the contractor group, noted the Minister of Mirempet, is “aligned with the efforts of the Angolan Executive,” and its materialization constitutes a significant contribution towards achieving one of the main objectives and actions of the National Development Plan 2023-2027.
The minister recalled that since the approval of the production strategy and the general strategy for awarding petroleum concessions between 2019 and 2025, up to the approval of the Presidential Legislative Decree on Incremental Production, “we have worked consistently to consolidate a transparent and attractive business environment” for private investment.
It is also important to consider climate issues and adopt environmentally friendly measures and technologies to reduce the industry’s carbon footprint. Thus, the life extension of Block 15’s facilities is an opportunity to incorporate solutions for mitigating carbon emissions and other polluting gases.
Diamantino Azevedo emphasized that the extension of the Block 15 production sharing contract until 2037, as well as the extension of the operational life of the Kizomba A, Kizomba B, Mondo, Saxi, and Batuque offshore facilities, proves the confidence that international operating companies place in the measures approved and implemented by the Angolan Executive, led by President João Lourenço.
These premises, from the perspective of the governor, promote a transparent, stable, and trustworthy business environment for attracting private investment and enable the realization of the Angolan Petroleum Sector’s potential. Therefore, the execution phase will require the mobilization of significant financial, technological, and human resources to ensure the success of this project.
Angola’s Energy Future is Promising
The General Manager of ExxonMobil in Angola, Brian Unietis, stated that the final investment decision represents a milestone that goes beyond business decisions because it reflects the shared commitment regarding the future of Angolan energy.
The fact that Block 15 began its operations in 2003, with a record of 18 commercial discoveries, a total oil production exceeding 600,000 barrels per day, which to date totals approximately 7.7 billion barrels, constitutes proof of the success of the three-decade partnership, according to Brian Unietis.
“During this time, we have invested more than seven billion dollars and contributed over one hundred million dollars in social programs, strengthening Education, Healthcare, and community development for Angola,” he revealed.
