Australian E&P company takes first steps into Africa

Red Sky Energy secures stake in Angolan offshore block

ANGOLA: Having announced the conclusion of an agreement to participate in offshore Block 6/24 at the beginning of the month, CEO Andrew Knox revealed to Energy Capital & Power that the company had been looking at opportunities across the continent for at least three years before deciding to make Angola their first destination in Africa.

“The deal we signed represents our first foray into the African continent and is extremely exciting for us,” he said adding that the country offered a well-established sector with proven resources. “We can use our expertise to develop and bring to market (these discoveries). In Angola, we are seeing plenty of opportunity to do just this. There are a lot of smaller fields situated nearby established infrastructure.”

Red Sky Energy signed a Risk Service Contract on 31 December 2024 for offshore Block 6/24 in partnership with ACREP Exploração Petrolífera SA and Sonangol Exploracao e Produção SA following direct negotiations with the Angolan National Agency for Oil, Gas and Biofuels (ANPG).

Although not looking to operate, Knox confirms that this may change in the future. “We would like to get comfortable in the market and engage with all the players first. However, we are not married to the idea of non-operator,” he said.

“There is a lot of oil in Angola, with good opportunities and a very supportive government. What the country has done in recent years - with changing their structuring, the establishment of the National Oil, Gas & Biofuels Agency and the improvement of the fiscal terms – is what has attracted us to the market,” he added.

Well-located approximately 12km from Luanda and the refinery, Know believes that Block 6/24 is an ideal fit for their first-entry into the country.

“The crude is heavy, with an API of roughly 20. However, there is production of that sort of crude in nearby fields, so it won’t be a problem for us to produce, potentially sign an offtake agreement and get the crude to the Luanda refinery,” he told Energy Capital & Power.

Looking at existing seismic data, Knox confirms that they are still assessing how they will develop the field.

“There is approximately 3,000 km² of seismic on the license and we will look to potentially reprocess that partially and assess how to develop the field. On the way forward: do we re-enter the existing well? Will we do a sidetrack or a new appraisal well? This is what we are currently analysing.

“We are not waiting three years to drill the well; this is just the timeframe for when we need to make a decision to drill. Obviously, we are looking to see if we can bring that timeframe forward,” he said, adding that Red Sky is optimistic about the opportunities offered in Angola.

“We hope to create a major profit centre for the company in the country. But we are focusing on existing discoveries or those in production - we won’t be looking outright at exploration at this point in time,” he confirmed.   

Having participated in a panel discussion during Angola Oil and Gas Conference last year, Knox says that the event was instrumental in their decision to finalise a deal in the country.

“It was our first participation at the conference and we were able to meet everyone. Everyone from the industry attends the event and it was exceptionally helpful for us,” he said..

Red Sky has partnered with Sonangol, the national oil company, as well as ACREP for a 45% stake in the Block.  Sonangol will operate with 50% and ACREP with 15%.

Tunisia vows to protect fisheries through stronger governance Calling for international cooperation to sustainably leverage marine resources