American oil major Chevron Corporation has signed agreements with the Angolan government that will allow it to commence exploration at two of its blocks off the Atlantic coast.
The company signed two Risk Service Contracts (RSC) with Angola’s National Oil, Gas and Biofuels Agency for Block 49 and Block 50, located in the ultra-deep waters of Angola’s Lower Congo Basin.
In a statement on Thursday, Africa Energy Chamber (AEC) executive chairman NJ Ayuk applauded the signing, saying it consolidated Chevron’s 70-year legacy in Angola while also highlighting the country’s robust regulatory framework that has enabled such ventures.
“Chevron’s recent signing of two RSCs further underscores the value of implementing a strong regulatory and fiscal environment in Africa,” Ayuk said.
He added: “When governments open up the market through attractive fiscal terms, the industry will respond positively.”
He called on other oil-producing African countries to “learn from this and adopt proactive measures to attracting foreign capital.”
The two blocks, located near the prolific Block 17, are expected to yield substantial returns and contribute to Angola’s growing ultra-deepwater asset portfolio.
The signing of the RSCs is the next step in the process of developing the two blocks by Chevron which was awarded the concessions – through its Angolan subsidiary Cabinda Gulf Oil Company – by way of a Presidential Decree in January 2024.
The RSCs add to Chevron’s strong asset portfolio in Angola. The company currently has a 26 percent market share in the country, with interests in Block 0 and 14 – which produce an average of 70,000 barrels of liquids per day and 259 million cubic feet of natural gas per day.
JN/APA