Angola has increased its crude oil output by about 25,000 barrels per day following the start of production at the N’Dola Sul project in late December, strengthening both upstream production and downstream energy security.
The project, developed by Angola’s National Oil, Gas and Biofuels Agency (ANPG) together with Chevron and a group of international and local partners, is expected to produce up to 25,000 barrels of oil per day from 12 wells.
According to a statement from the concessionaire, the crude will be transported to the Malango Terminal in Cabinda, while around 50 million cubic feet of gas per day will be supplied to the Angola LNG plant.
Production at N’Dola Sul began on December 24, a development the regulator described as another milestone in efforts to unlock Angola’s offshore resources as the government works to stabilise and increase output after years of decline.
Paulino Jerónimo, chairman of the ANPG board of directors, said the start of production represents “a new successful step” within the wider range of investments being made in the sector by Angola’s partners.
Chevron’s Southern Africa managing director, Frank Cassulo, said the project highlights the commitment of Cabinda Gulf Oil Company Limited (CABGOC), Chevron’s Angolan subsidiary and operator of Block 0, to building local capacity.
He said the development shows CABGOC’s determination to promote local content in Angola while “developing resources efficiently within the Block 0 concession.”
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ANPG, CABGOC and the project’s contractor group, which includes Sonangol, TotalEnergies and Azule Energy, are all partners in the N’Dola Sul development.
The launch of N’Dola Sul is also strategically significant as it aligns with the start-up of Angola’s long-awaited Cabinda oil refinery, the first refinery built since the country gained independence nearly five decades ago.
The 30,000-barrel-per-day facility will be Angola’s second refinery and is expected to play a key role in reducing reliance on costly fuel imports.
For many years, Angola exported most of its crude oil and then re-imported refined products at high cost, putting pressure on public finances and forcing the government to maintain expensive fuel subsidies. Cuts to those subsidies have previously triggered violent protests.
With new production from N’Dola Sul and increased refining capacity in Cabinda, the government aims to retain more value domestically, stabilise fuel supply and gradually reduce subsidies without sparking further social unrest.
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Image Credit: Energy Capital & Power
