Ultra-deepwater Namibe in doubt, despite ExxonMobil deal
US major’s investment boosted prospects of Angola’s beleaguered oil sector, but its blocks are unlikely to be economically viable without a crude price rebound
Despite ExxonMobil signing a risk service agreement to become the operator of Namibe deepwater blocks 30, 44 and 45 in late October, it remains far from certain that oil will be produced in the foreseeable future. Namibe’s output will depend on the size and nature of any discoveries as well as the quality of the reservoirs, says Emma Richards, a senior industry analyst at Fitch Solutions. ExxonMobil’s Namibe blocks are located 50-100km from Angola’s coast at depths of 1,500-3,000m, far beyond Angola’s proven oil reserves in the Lower Congo and Kwanza basins. “Ultra-deepwater wells are extremely costly to drill, and there is not much scope for that type of big-ticket spending” Richards,

Also in this section
14 March 2025
Gas production slumped to an eight-year low in 2024, but new discoveries and partnership with Cyprus paint a more positive outlook
13 March 2025
Gas will become a more important part of the energy mix longer-term, raising the alarm for much-need investment as supply struggles to keep up with demand
13 March 2025
The spectre of Saudi Arabia’s 2020 market share strategy haunts a suffering OPEC+ as Trump upends the energy world
12 March 2025
Petronas-Eni eyes joint venture to prioritise key gas developments, with huge opportunities for growth in Indonesia and a steady Malaysia portfolio