Block 15/06 (East & West Hub)

Block 15/06 (East & West Hub) Oil and Gas Block Profile

Location

Block 15/06 is located offshore Angola, approximately 350 kilometers north-west of the city of Luanda, in the Lower Congo Basin. The block is situated at coordinates around -6.0505, 11.3305 (WGS 84).

Operator and Ownership

The block is operated by Azule Energy, which took over from Eni in 2022. The ownership structure includes:

• Azule Energy: 36.84%
• Sonangol Pesquisa e Produção: 36.84%
• SSI Fifteen Limited (a joint affiliate of Sinopec and Sonangol): 26.32%.

History and Discovery

• The block was awarded during Angola’s 2006 licensing round.
• Since its award, 20 new fields have been discovered, with 10 of these fields currently onstream.
• Key discoveries include the fields in the West Hub (Sangos, Cinguvu, Mpungi, Ochigufu, and Vandumbu) and the East Hub (Cabaça South East and Cabaça Central UM8).

Production Hubs

The block is divided into several producing hubs:

• West Hub: Production began at the end of 2014. This hub involves the development of six fields linked by 31 subsea wells, with 18 producing and 13 injecting wells connected to the FPSO Ngoma.
• East Hub: Production started in February 2017. This hub includes the development of the Cabaça North and Cabaça South-East discoveries, with 11 wells (six producing and five injecting) linked to the FPSO Olombendo.
• Future Southeast (Kalimba) Hub: Planned for future development.

Production and Reserves

• Production: The block produced 123,000 barrels of oil equivalent per day (kboe/d) in 2020, with a production design capacity of 69.35 million barrels per year as of 2022.
• Reserves: The block holds estimated oil reserves of 900 million barrels as of 2022.

Key Fields and Discoveries

• Agogo Field: Discovered in March 2019, with an estimated one billion barrels of recoverable reserves. Initial production started in January 2020 at a rate of 20,000 barrels of oil per day (bopd).
• Cabaça North and Cabaça South-East: These discoveries were made in 2009 and 2010, respectively. Combined oil reserves are estimated at approximately 230 million barrels.
• Other Discoveries: Include Kalimba, Afoxé, Ndungu, and Agidigbo fields.

FPSO and Infrastructure

• Ngoma FPSO (West Hub): Capable of processing approximately 100,000 barrels of oil and 115 million cubic feet (Mcf) of gas per day, with a water injection capacity of 120,000 barrels per day.
• Olombendo FPSO (East Hub): Converted from the Armada Ali VLCC tanker, it has a crude oil production capacity of 80,000 bopd, a storage capacity of 1.8 million barrels, and is moored at a 450m water depth.

Development and Operations

• Development Phases: The East Hub Development Project involves multiple phases, including the development of the Cabaça South-East and Cabaça North discoveries with a total of 23 subsea wells.
• Recent Activities: Include the start of production from the Cabaça North field in September 2021, the Ndungu Early Production in February 2022, and ongoing studies for the full field development of the Agogo field.

Environmental and Economic Considerations

• Emissions and Regulatory: The project adheres to strict environmental standards, including zero-discharge and zero-process flaring FPSOs.
• Economic Analysis: Detailed economic analyses are included in reports, covering cash flow, discount rates, inflation rates, and oil price sensitivities.

Contractors and Partners

• Eni: Initially the operator, now Azule Energy operates the block.
• Sonangol: National oil company of Angola.
• SSI Fifteen Limited: A joint affiliate of Sinopec and Sonangol.
• Contractors: Include Saipem for engineering, procurement, and construction activities.