Block 18

Block 18 Oil and Gas Block, Offshore Angola

Location and Geography

Block 18 is located offshore Angola, approximately 160km north-west of Luanda. It is situated in deepwater, with depths ranging from 1,200m to 1,600m.

Project Details

• Operator and Ownership: The block is currently operated by Azule Energy Angola, following a transition from BP. The ownership structure includes Azule Energy (36.3%), SSI Fifteen Limited (37.72%), Sonangol Pesquisa e Produção (16.0%), and BP (10.0%).
• Discovery and Development: The Greater Plutonio development within Block 18 was discovered between 1999 and 2001. The fields include Galio, Cromio, Paladio, Plutonio, and Cobalto, with later discoveries of Cesio and Chumbo fields.

Fields and Reserves

• Greater Plutonio Fields: This development comprises five fields: Galio, Cromio, Cobalto, Paladio, and Plutonio. These fields have total estimated reserves of about 750 million barrels of oil.
• Platina, Cesio, and Chumbo Fields: Located approximately 30km away from the Greater Plutonio fields, these are being developed as part of the second phase of the block's development. The Platina field, in particular, is being developed as a subsea tie-back to the existing Greater Plutonio FPSO.
• Total Reserves: The block has estimated oil reserves of 684.92 million barrels as of 2018.

Infrastructure and Production

• FPSO: The Greater Plutonio development uses a 310m-long, ‘all-electric’ Floating Production, Storage and Offloading (FPSO) unit. The FPSO has an oil storage capacity of 1.75 million barrels, an oil processing capacity of up to 240,000 barrels per day (bpd), a water injection rate of 450,000 bpd, and a gas handling capacity of up to 400 million standard cubic feet per day (MMscf).
• Subsea Wells and Facilities: The development involves 43 subsea wells (20 producers, 20 water injectors, and three gas injectors) tied back to the FPSO. The wells are connected via manifolds, flowlines, and risers.
• Production Capacity: The Greater Plutonio FPSO has a nameplate capacity of 220,000 bpd, although the current operational capacity is estimated to be around 76,000 bpd. The Platina field development aims to utilize the spare processing capacity of the FPSO.

Recent and Ongoing Developments

• Platina Project: Approved in December 2018, this project involves a drilling campaign using the drillship DS-12. It aims to unlock 44 million barrels of oil reserves and add 30,000 bpd to the block's production at its peak. The project includes drilling four wells (two production and two injection wells) and is expected to utilize the existing Greater Plutonio FPSO.
• New Wells and Subsea Structures: Recent contracts have been awarded for subsea structures, with plans to drill three new wells to further improve production in Block 18.

Production Timeline and Economic Projections

• Production Start: Production from the Greater Plutonio development began on October 1, 2007. The Platina field was scheduled to come on stream by the end of 2021.
• Peak Production: The Greater Plutonio Complex reached its peak production in 2013. Based on economic assumptions, production is expected to continue until the field reaches its economic limit in 2048.
• Capital Expenditure: The capital expenditure for the Greater Plutonio development was estimated at $4 billion over the life of the fields.

Partners and Contractors

• Partners: The original partners included BP (46%), Sinopec International (37.72%), and Sonangol P&P (16.28%). The current ownership structure includes Azule Energy, SSI Fifteen Limited, Sonangol Pesquisa e Produção, and BP.
• Contractors: Key contractors have included KBR for the engineering, procurement, construction, and management (EPCM) of the FPSO, and Hyundai Heavy Industries for the construction of the FPSO hull and topsides. TechnipFMC has been involved in recent subsea structure contracts.

Strategic Importance

• National Contribution: The Greater Plutonio Complex currently accounts for approximately 6% of Angola's daily oil output.
• Extension of Production Licence: The development of the Platina field and other subsequent fields has extended the production licence for the Greater Plutonio project until 2032.

Block 18 remains a significant contributor to Angola's oil production, with ongoing developments aimed at optimizing and extending the life of the fields.