May 16, 2019
Following Italian major Eni’s announcement on May 14 of an oil discovery on the Ndungu prospect offshore Angola, Rystad Energy senior analyst Palzor Shenga said:
"This is the fourth oil discovery on deepwater block 15/06 in the Lower Congo basin. We at Rystad Energy estimate the new discovery to hold around 75 million barrels of recoverable resources. This is the second-largest discovery in the block, trailing only the Agogo-1 was announced in March. The collective recoverable resources of these four discoveries are estimated at around 360 million barrels of oil."
"The Ndungu discovery is a perfect candidate for a fast-track project. We expect both Ndungu-1 and Agogo-1 to come online by the early 2020s, and they are forecast to contribute around 68,000 barrels per day of liquids at peak," Shenga added.
As previously noted (link), Angolan block 15/06 is one of the most expensive exploration licenses ever awarded, after Eni and its partners paid a signature bonus of almost $1 billion to the Angolan government in 2006.
"The operator believes that the block holds additional potential. More discoveries like these would help Eni provide its shareholders with return on the huge investments made, and potentially justify the signature bonus," Shenga remarked.
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