Australian oil and gas exploration and production company Red Sky Energy has announced its entry into the African market with the acquisition of a 35% stake in Block 6/24, located offshore Angola.
This strategic acquisition, secured through direct negotiations with the Angolan government, marks the company’s first foray into Africa.
The deal sees Red Sky partnering with Sonangol, the national oil company, which will hold a 50% operating interest, and local company ACREP, holding the remaining 15%.
“Sonangol has a strong understanding of the market and an established presence on the ground, which will be instrumental in facilitating our integration into the country,” said Andrew Knox, CEO of Red Sky Energy.
Promising Block Near Luanda
Block 6/24, situated just 12 kilometers from Luanda and its refinery, boasts significant advantages, including the Cegonha oil discovery.
While the crude is heavy with an API gravity of approximately 20, production of this type of oil is already established in neighboring fields, facilitating its development and commercialization.
The contract outlines a three-year geological and geophysical study program, with a potential drilling decision in the fourth year.
Red Sky Energy is already planning to reprocess existing seismic data covering 3,000 square kilometers and is evaluating development options, including re-entering the existing well or drilling a new appraisal well.
Ambitious Growth Plans
This acquisition is just the first step in Red Sky Energy’s ambitious plans for Angola.
The company, which prioritizes proven or developed assets, sees numerous opportunities in the country, particularly following recent reforms in the oil sector.
“What the country has done in recent years – changing its structure, creating the National Agency for Oil, Gas and Biofuels, and improving fiscal terms – is what attracted us to this market,” Knox explained.
The Angola Oil & Gas 2024 conference played a crucial role in facilitating this deal.
As a first-time participant, Red Sky Energy was able to establish key contacts within the industry. The company has already confirmed its participation in the 2025 edition, demonstrating its long-term commitment to the Angolan market.
“We hope to create a major profit center for the company in the country,” Knox concluded, hinting at potential future acquisitions in the Angolan market.
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