The Angolan government has signed fresh concession agreements with five major oil companies aimed at revitalizing production in the country’s Block 17 oil field.
The signing, held on Wednesday, included Angola’s National Oil, Gas and Biofuels Agency (ANPG), state-owned Sonangol, TotalEnergies, Equinor, ExxonMobil, and Azule Energy.
These agreements represent a strategic move to extend the operational life of the Block 17 platform, particularly the Dalia field, through significant investments.
As part of the newly signed deals, up to $6 billion will be invested in the improvement of the Dalia platform and associated infrastructure through the year 2030.
Discovered in the 1990s, the Dalia field remains one of Angola’s largest oil assets.
State to reap 90% of production share
Paulino Jeronimo, Chief Executive of ANPG, highlighted the importance of the concession for national interest:
“We have a production profile that has generally been negotiated over the years with operators, and those who produce above average have an incentive.”
Jeronimo stressed the mature phase of the Dalia field and noted Angola’s strong position with a 90% production share for the state and 10% for the investors.
Under current conditions, Jeronimo estimated that the existing platform could produce around 120 million barrels over its remaining life.
However, with the fresh capital injection, the production potential could soar to some 500 million barrels.
Strategic economic benefits
Janio Correia Victor, Secretary of State for Mineral Resources, spoke on the broader impact of the agreements:
“The concession agreements will bring production growth, increased employment, technology transfer, and economic development.”
He described the deal as a “decisive step” in sustaining production and reinforcing Angola’s energy economy.
Martin Deffontaines, TotalEnergies’ Chief Executive for Angola, shared similar enthusiasm, stating:
“We have opened a new chapter in the Dalia journey, which is a 20-year-old Block 17 platform that still produces 140,000 barrels per day.”
He further said the agreement will enable the Dalia Lifex extension and enhancing infrastructure resilience:
“The deal will allow for the Dalia and the Dalia Lifex extension project and help address issues around platform and subsea facility integrity,” Deffontaines said.
The TotalEnergies executive also revealed that the Dália Lifex initiative will facilitate the drilling of five new wells “that will contribute to the country’s economic growth.”
Ownership structure and concession timeline
Block 17 is operated offshore and involves several international stakeholders:
- TotalEnergies (40%)
- Equinor (23.33%)
- ExxonMobil (20%)
- BP (16.67%)
The signed concessions will extend the block’s operational timeline until the year 2045.
It is worthy to note that this agreement marks the second major upstream development announcement by ANPG within a month.
Just a week prior, the agency disclosed government plans to invest up to $60 billion in Angola’s oil and gas sector over the next four years.
This announcement came shortly after the arrival of the Agogo FPSO in May. According to Azule Energy, the new vessel is projected to increase the nation’s oil output by up to 175,000 barrels per day.
