ExxonMobil makes new oil discovery on Angola's Block 15: sources

ExxonMobil has found oil at its Likembe-01 well in Angola's Block 15, two years after the last discovery on the prolific offshore license, sources said May 14.

A source familiar with the drilling campaign told S&P Global Commodity Insights the well "did encounter hydrocarbons," adding ExxonMobil is currently "assessing the well."

According to ANPG, Angola's energy regulator, the well – located in the Kizomba B development area – was drilled between February and April to a maximum water depth of 3,013 meters.

It is the first to be drilled as part of an incremental production initiative led by the regulator to increase crude output from existing oil and gas projects in a bid to reverse years of production declines.

Block 15 is one of Angola's largest oil-producing blocks but output from its mature fields has fallen in recent years. In 2019, ExxonMobil signed a deal with state-owned Sonangol to redevelop and boost production from the license, which holds approximately 4 billion boe of recoverable resources, according to the US company.

ExxonMobil operates the block with a 40% interest, alongside partners Sonangol, Norway's Equinor and Azule Energy, an Angola-focused joint venture between BP and Italy's Eni. It is one of three deepwater blocks held by ExxonMobil offshore Angola.

The Likembe-01 find follows the 40,000 b/d Bavuca South-1 oil discovery in 2022 – the first since 2003. There have been 17 previous discoveries on Block 15: Hungo, Kissanje, Marimba, Dikanza, Chocalho, Xikomba, Mondo, Saxi, Batuque, Mbulumbumba, Vicango, Mavacola, Reco Reco, Clochas, Kakocha, Tchihumba and Bavuca.

ExxonMobil declined to comment on the discovery.

Output slump

Although in its early stages, the find could hearten Angolan officials, who have been battling to increase output following years underinvestment, technical problems and insufficient exploration activity. Oil revenues are a vital source of funding for the government.

Crude output peaked at 1.9 million b/d in 2010, but Angola pumped just 1.13 million b/d in March, according to ANPG data.

Angola quit OPEC in January after 19 years of membership in opposition to what it saw as investment-sapping quota cuts. Yet exports have fallen by 300,000 b/d from December, according to data from S&P Global Commodities at Sea.

Its heavy crude grades – including Girassol and Dalia – find buyers in Asia and Europe, with China its biggest customer by far.