Angola Sees High Interest in Oil Block Tender

Angola’s National Agency of Petroleum, Gas, and Biofuels (Anpg) received 53 bids for oil exploration.

These bids are for 12 onshore oil blocks in the Baixo Congo and Kwanza basins. The national concessionaire announced this development today.

The Congo Basin’s four blocks – CON 2, CON 3, CON 7, and CON 8 – attracted 22 proposals. Notably, CON 8 alone received ten bids, with four companies aiming to operate this block.

In contrast, the Kwanza Basin’s eight blocks garnered 31 bids. These bids were for blocks KON 7, KON 10, KON 13, KON 15, and KON 19.

Among these, 22 bids proposed operating roles. However, the remaining three blocks – KON 1, KON 3, and KON 14 – saw no interest.

The next steps involve evaluating the proposals and the companies behind them. The process is set to conclude by December. The results will likely be announced in mid-January 2024.

Following the evaluation, negotiations with selected companies will begin. The entire process is expected to be finalized by the end of March next year.

At the proposal opening ceremony, José Barroso, the Secretary of State for Petroleum and Gas, noted the global oil industry’s challenges.

Despite these, he emphasized that Angola’s exploration conditions offer a stable and attractive business environment.

Barroso mentioned that Angolan authorities are adopting a close approach to deal with challenges.

This approach aims to build consensus in the oil sector, engaging all stakeholders. It is especially focused on companies that invest in impactful projects.

“This tender represents a significant step in exploring and producing hydrocarbons in the Baixo Congo and Kwanza basins,” Barroso said.

He highlighted the aim to attract experienced companies to these geologically complex areas.

He also pointed out that this process would encourage the growth of small and medium-sized oil companies.

It will also promote the use of skilled Angolan labor. Additionally, it aims to boost technological innovation and good governance practices.

Angola wants to remain attractive in the oil sector

Paulino Jerónimo, Anpg’s Board Chairman, emphasized the commitment to best practices in the sector.

He underscored transparency, negotiation flexibility, and adherence to health, safety, and environmental standards.

Jerónimo also highlighted Angola’s efforts to remain an attractive destination for oil sector investment.

These efforts include implementing reforms by the Ministry of Mineral Resources, Petroleum and Gas.

“Angola offers a stable business environment with flexible negotiation and tax incentives,” Jerónimo said. He mentioned that over 50 blocks are available for investment until 2025.

Previous tender rounds occurred in 2019, 2020, and 2021. These followed the launch of a strategy for allocating oil concessions from 2019 to 2025.

This strategy aims to tender over 50 oil concessions through public contests and continuous offers.