Eni has announced the discovery of an offshore oil field in Block 15/06 in Angola, with preliminary estimates indicating crude oil reserves of approximately 500 million barrels. This discovery enhances the upstream oil and gas prospects in Angola and highlights the importance of infrastructure-led exploration.
The discovery stems from the Algaita-01 exploration well, located about 18 kilometers from the Olombendo Floating Production Storage and Offloading (FPSO) unit. Drilled by the Saipem 12000 drilling vessel in water depths of 667 meters, the well encountered oil-bearing sandstone in multiple Upper Miocene intervals. The company stated that the reservoir quality is good, with logging and fluid sampling confirming excellent petrophysical properties.
The 500 million barrels of crude oil reserves represent one of Angola's more significant oil discoveries in recent years. Although recoverable reserves have not been disclosed, the proximity to the Olombendo FPSO enhances development feasibility. Tie-back to existing infrastructure can reduce capital intensity and accelerate first oil, which is crucial for international oil companies emphasizing capital discipline and short-cycle projects.
Block 15/06 is operated by Azule Energy, which holds a 36.84% stake, with the remaining interests held by Sonangol E&P (36.84%) and SSI (26.32%). Azule Energy is a 50:50 joint venture established by Eni and bp in 2022, integrating the two companies' upstream assets in Angola. It has now become one of the country's major independent operators, with producing assets connected to multiple FPSOs.
This discovery strengthens Angola's ongoing exploration potential, particularly in basins with mature infrastructure. In recent years, Angola has attracted investment through fiscal reforms and licensing rounds to counter declining production. Discoveries like Algaita-01 support these efforts, especially as operators focus on near-field exploration to optimize returns from existing hubs.
For Eni and bp, this discovery enhances Azule Energy's upstream pipeline against the backdrop of energy transition and oil price volatility. Infrastructure-led exploration in established basins carries lower risk and enables faster monetization, aligning with the industry trend towards high-margin, capital-efficient projects.
Further appraisal is needed to refine reserve estimates and development plans. However, the substantial crude oil volume, high-quality reservoir, and proximity to processing capacity position Algaita-01 as a potentially significant addition to Angola's offshore production in the coming years.
