KEY POINTS
- Sonangol’s Katambi-2 offshore appraisal well in Angola crossed two productive intervals and confirmed good-quality reservoirs.
- Initial tests produced 41 MMscfd of gas and 1,160 barrels per day of condensate
- The absence of water and hydrogen sulphide improves the discovery’s economic prospects
Angola’s state-owned oil company, Sonangol, and the country’s oil and gas regulator have announced promising results from the Katambi-2 offshore appraisal well, with initial testing confirming productive reservoirs and strengthening the prospects for commercial development of the discovery.
The well, located in Angola’s offshore Block 24 in the Benguela Basin, crossed two productive intervals and encountered what the operators described as good-quality reservoirs.
Initial testing recorded a stabilised production rate of 41 million standard cubic feet per day (MMscfd) of gas and 1,160 barrels per day of condensate, according to a joint statement issued by Sonangol and the National Oil, Gas and Biofuels Agency (ANPG).
The results could further strengthen Angola’s efforts to develop its domestic gas resources and maintain crude oil production at a time when the country is seeking to maximise output from its maturing oil fields.
Initial tests from the appraisal well showed a stabilised production rate of 41 MMscfd of gas, alongside 1,160 barrels per day of condensate.
More significantly, preliminary testing indicated that the well could have the capacity to produce more than 100 MMscfd of gas.
The discovery of commercially useful gas and condensate could provide Angola with an opportunity to expand its energy portfolio beyond crude oil and strengthen the country’s gas production capacity.
The absence of water and hydrogen sulphide during the tests was also identified as a positive factor in assessing the potential development of the discovery.
No water or hydrogen sulphide detected
Sonangol and ANPG said the absence of water and hydrogen sulphide in the tested intervals improved the economic outlook for the discovery.
Hydrogen sulphide is a toxic and corrosive gas that can create additional technical, safety and processing challenges during oil and gas production. Its absence could therefore simplify aspects of the development and reduce some potential operational complications.
The companies said the results strengthened the economic viability of developing the discovery, while also highlighting its potential contribution to Angola’s national production.
The Katambi-2 results come as Angola continues to seek ways to sustain its oil production, which has been hovering around 1 million barrels per day.
The development of additional gas and condensate resources could help the country broaden its production base and potentially support its wider energy sector.
While the initial results are encouraging, further appraisal, engineering studies and development planning would be required before the full commercial potential of the discovery can be established.
The well’s potential to deliver more than 100 MMscfd of gas, however, makes it an important development for Angola’s upstream industry.
Katambi-2 is located close to Katambi-1, a wildcat well drilled by BP more than a decade ago in the Benguela Basin.
BP subsequently relinquished its interest in the area after determining that the discovery was not commercially viable under the conditions prevailing at the time.
The earlier exploration nevertheless indicated the presence of substantial hydrocarbon resources. Sonangol had previously estimated that the pre-salt discovery could contain approximately 1.7 billion barrels of oil equivalent, consisting predominantly of gas and condensate.
The latest results from Katambi-2 could therefore renew interest in the commercial potential of the area, particularly in light of changing technology, market conditions and Angola’s increasing focus on developing domestic gas resources.
The appraisal results could have significance beyond the individual well, particularly as Angola seeks to expand its gas industry and reduce its dependence on oil revenues.
Gas production can support domestic power generation, industrial activity and other energy-intensive sectors, while condensate can provide an additional source of hydrocarbon revenue.
If subsequent appraisal work confirms the initial findings and a commercially viable development plan is established, the Katambi discovery could become an important component of Angola’s future gas and condensate production.
However, the current figures remain preliminary, and further technical and commercial assessments will be needed to determine the size of recoverable resources and the scale of any future development.
