The African Energy Chamber commends Azule Energy for its commitment to sustainability and its operations in Angola, which align with the country's exploration and production objectives.
To consolidate its position as a prominent participant in the international energy market, Angola has formulated a strategy to augment oil and gas production to mitigate anticipated natural decline. The nation intends to elevate oil production to 1.1 million barrels per day (bpd), sustaining this output until 2027. Concurrently, Angola is endeavoring to enhance natural gas' contribution to its energy portfolio, targeting a 25% share by 2025. This initiative will bolster feedstock for the Angola LNG facility. Through substantial investments in upstream projects, Azule Energy is well-positioned to assume a pivotal role in assisting the nation in realizing its ambitious energy objectives.
Enhancing Angolan Energy Security through Strategic Upstream Investments
Azule Energy is a prominent independent equity producer of oil and gas in Angola. With a substantial resource base of two billion barrels equivalent, the company holds stakes in 20 licenses, including 11 operated licenses. Azule Energy also participates in the Angola LNG joint venture, which operates the country's inaugural LNG plant.
The company has set ambitious growth targets, aiming to increase oil production to 250,000 barrels per day within the 2023-2026 timeframe. Simultaneously, it seeks to accelerate gas monetization through the New Gas Consortium (NGC), operated by Azule Energy. Additionally, the company is committed to developing 500 megawatts of renewable energy by 2025.
This diversified project portfolio aligns strategically with the government's efforts to enhance energy security in Angola. Azule Energy's expertise and commitment to sustainable development position it as a key player in the country's energy landscape.
Among its upcoming projects is the Agogo Integrated West Hub development, which entails the establishment of a novel production hub in Block 15/06. This project will extract hydrocarbons from the currently producing Agogo field and the newly developed Ndungu field, utilizing the existing Ngoma FPSO and the Agogo FPSO, which is currently under construction. By leveraging the existing infrastructure in Block 15/06, the Agogo FPSO will possess a capacity of 120,000 barrels of oil per day and a gas injection capacity of 230 million cubic feet per day. Upon achieving Financial Investment Decision (FID) in 2023, the Agogo Integrated West Hub project is anticipated to commence operations in 2026.
Despite recent developments, Azule Energy remains dedicated to further supporting Angola's production growth by optimizing output in existing fields. In alignment with Angola's newly established Incremental Production Program, which aims to encourage investment in already-producing assets, the company is evaluating expansion opportunities at mature fields. Currently, Azule Energy's operated blocks portfolio encompasses Cabinda Norte and Cabinda Centro (onshore), as well as Blocks 31, 15/06, 1/14, 18, and 28 (offshore). Additionally, the company operates four FPSO vessels, each with a capacity of 1.75 million bpd. Strategic investments in incremental production at producing blocks will not only maximize field development but also contribute to the nation's energy security.
In addition to oil, the company is also leading the development of Angola's first non-associated gas project through the NGC. The initial phase of the project involves the monetization of gas resources from the Quiluma and Maboqueiro fields, situated in the shallow waters of the Northern Gas Complex. This phase aims to produce four billion cubic meters of gas annually using two offshore platforms and an onshore gas processing plant. The project is strategically designed to supply gas to the Angola LNG plant and is scheduled for its first production in 2026. The NGC has the potential to utilize gas from Blocks 2, 3, and 15/14 for the Angola LNG plant, thereby promoting diversification and enhancing gas monetization in Angola.
“Azule is fully committed to Angola. Angola is and remains at the core of our corporate strategy even as we explore other interesting opportunities outside. Our leadership is fully committed to investing and developing local content in Angola because we believe that is the right thing to do,” said Adalberto Fernandes, Government Affairs Director at Azule Energy.
At the forefront of sustainable solutions for the oil and gas industry
Azule Energy prioritizes sustainability in its Angolan operations. Notably, the Agogo FPSO, an innovative infrastructure, incorporates carbon capture and storage (CCS) capabilities. This vessel redefines industry sustainability as the first of its kind. It features the world's initial post-combustion CO2 capture plants installed offshore, substantially reducing CO2 emissions. Additionally, the FPSO integrates electrification and automation technologies, aligning with the company's vision of achieving net-zero Scope 1 emissions by 2030.
Currently, the company is in the process of producing its inaugural sustainability report. This report will provide a thorough overview of Azule Energy’s performance concerning Environmental, Social, and Governance (ESG) practices. The report will outline a strategy to achieve net-zero and introduce stakeholders to the measures and technologies being implemented to promote sustainable oil and gas operations.
In addition, Azule Energy is dedicated to bolstering local content within Angola. Through its operations, Azule Energy facilitates job creation opportunities and has integrated a skills development component into all projects. Block 15/06 is poised to emerge as a hub for local industries, generating $5.6 billion and creating 1,400 employment opportunities by 2044.
Concurrently, the company's onshore gas processing facility in Soyo, forming a component of the NGC, incorporates specific local content elements. The NGC anticipates that $1 billion of the project's expenditures will be allocated to the procurement of local goods, services, and materials. In conjunction with renewable energy investments, these initiatives aspire to establish a new benchmark for sustainable oil and gas operations in Angola.