KEY POINTS
- Sequa Petroleum acquires stakes in Angola’s Blocks 15/06 (10%), 23 (40%, operator), and 27 (35%), expanding its regional influence.
- Block 15/06 production is expected to exceed 200,000 bopd by 2026, doubling current output.
- Angola’s investor-friendly policies to offer 10 new blocks in Kwanza and Benguela Basins next year.
Sequa Petroleum, a U.K. oil and gas company has secured the Angolan government’s approval to acquire significant stakes in three strategic offshore oil blocks: a 10 percent interest in Block 15/06, 40 percent in Block 23 (along with operatorship), and a 35 percent interest in Block 27 respectively.
This acquisition marks a significant expansion for Sequa in Angola’s oil sector, one of Africa’s most prolific petroleum-producing regions, as the nation ramps up its appeal to foreign investors under new energy-friendly policies.
Block 15/06: A deepwater asset with high production potential
Block 15/06, one of Angola’s most productive deepwater licenses, currently yields approximately 100,000 barrels of oil per day (bopd). Production from this block is projected to more than double over the next two years, supported by a rigorous development program that aims to push output beyond 200,000 bopd. This block, operated by Angola’s leading national and international oil companies, has established a strong track record for oil recovery and technical achievements, making it a cornerstone in Sequa’s asset portfolio.
Strategic interests in Blocks 23 and 27
With the acquisition, Sequa now operates Block 23, holding a substantial 40% interest in this promising asset. The 35% interest in Block 27 further strengthens Sequa’s presence in the region.
This positioning enables the company to capitalize on exploration and production across underexplored areas. Sequa’s interests align with Angola’s National Oil, Gas & Biofuels Agency’s (ANGP) initiatives to boost partnerships.
These partnerships aim to enhance technological expertise and production efficiencies within Angola’s oil sector.
Funding and transaction details
The acquisition process, initiated in 2022, is set to close by year-end. Sequa and its partners will fund the transaction through equity contributions and third-party financing.
An independent review on Block 15/06, following SPE PRMS guidelines, estimates Sequa’s 10% stake could yield about 72 million barrels of recoverable oil as of January 2024. Cumulative recoverable reserves from the acquisition’s effective date total approximately 78 million barrels.
Angola’s new investor-friendly landscape
The government’s recent approval underscores Angola’s strong commitment to attracting foreign investment. Angola’s Minister of Mineral Resources, Oil, and Gas, Diamantino Azevedo, highlighted new policies targeting investor diversification.
These policies include a permanent offering of exploration blocks and broadening opportunities for international investors.
The Angola Oil & Gas 2024 conference introduced policies to open access to offshore blocks in Kwanza and Benguela Basins. The blocks will go up for auction early next year.
As Sequa Petroleum expands in Angola, it aims to drive growth in the nation’s energy sector through new assets. Increased production from Block 15/06 and development in Blocks 23 and 27 support Sequa’s ambitious plans.
This expansion aligns with Angola’s vision to become Africa’s leading oil and gas hub, boosting international investment and regional energy security.
