Angola: Red Sky Energy Signs Landmark Contract For Angola’s Block 6/24

Australian-based oil and gas company Red Sky Energy has signed a Risk Service Contract (RSC) for Block 6/24, located offshore Angola in the prolific Kwanza Basin.

The contract, signed on 31 December 2024 in partnership with Sonangol Exploração e Produção SA (Sonangol E&P) and ACREP Exploração Petrolífera SA (ACREP), grants Red Sky a 35% interest in the block. The deal is a direct result of the progressive reforms the Angolan government has implemented in recent years.

It is a clear message to African countries that when you create an enabling environment and fix above-ground risk issues, explorers will back you with investments.

As the voice of the African energy sector, the African Energy Chamber (AEC) commends this landmark achievement and the collaborative efforts between Red Sky Energy, Sonangol E&P, ACREP and the Angolan National Agency for Oil, Gas and Biofuels (ANPG).

This contract is a testament to Angola’s robust pro-investment climate and progressive regulatory reforms that have consistently attracted global energy players to the country. By fostering an enabling environment for foreign investment, Angola continues to solidify its reputation as a hub for exploration and development in Africa.

Block 6/24 spans 4,930 km² and boasts extensive 2D and 3D seismic coverage. Initial geological and geophysical studies suggest significant potential for commercial viability, positioning the block as a key prospect in Angola’s oil exploration landscape.

The block’s extensive seismic database, combined with nine previously drilled wells and the Cegonha discovery, underscores its significant hydrocarbon potential. Red Sky Energy’s thorough analysis of the block’s data suggests a promising future, with further studies set to define the commercial potential of its resources.

This project represents the type of partnership-driven development that will be crucial to meeting Africa’s energy demands while contributing to global supply security.

“Red Sky brings to Angola a strong technical team with tremendous experience in exploring and developing complex oil and gas projects. Their investment and development of this acreage will be a tremendous addition to the Angolan economy and its energy future. Why? Because the Angola oil and gas reforms are already driving tremendous job creation, energizing the economy and pumping greater revenues into government coffers. And companies like Red Sky can significantly strengthen Angola’s energy security and move us toward making energy poverty history,” said NJ Ayuk, Executive Chairman of the AEC.

Looking ahead, this agreement is poised to support Angola’s goals of maintaining production above one million barrels per day beyond 2027. It reflects the country’s strategic focus on leveraging its abundant resources to catalyze economic growth and energy security.

Following the signing of the RSC, the companies will implement a Joint Venture Operating Agreement, formalizing the roles, responsibilities and operational frameworks among the joint venture partners.

The approval of the RSC by the Angolan Parliament is anticipated within the next 90 days, paving the way for the companies to conduct geological and geophysical studies over the next three years. During this stage, focus will be placed on seismic reprocessing and detailed subsurface evaluation.

“Exploration is the next big thing in Angola and the reforms have done the magic in attracting the right players and encouraging the already existing players. It’s Angola’s chance to increase oil and gas production and regain its competitive position as one of Africa’s leading producers. Angola has got a once-in-a-generation opportunity to harness its own resources and secure its future. I am happy they are seizing that opportunity and they are not listening to the Just Stop Oil crowd,” added Ayuk.

The AEC applauds Angola’s continued dedication to fostering innovation and collaboration within the energy sector, ensuring that projects like Block 6/24 become success stories that inspire further investment in the region.

The Red Sky Energy RSC further underscores that Angola continues to reap the benefits of reform. Red Sky Energy’s success in Angola underscores the transformative potential of aligning public and private sector efforts in pursuit of shared goals.

Source: https://energynewsafrica.com