Block 3/05

Block 3/05 Oil and Gas Complex Profile

Location

The Block 3/05 Oil and Gas Complex is located offshore in Angola, specifically in the Lower Congo Basin, approximately 50 kilometers offshore. The coordinates are approximately -7.074, 12.338 (WGS 84).

Operator and Ownership

The complex is operated by Sonangol P&P, the national oil company of Angola. The ownership is distributed among several companies:

• Sonangol E.P.: 50.0%
• Maurel & Prom: 20.0%
• Somoil: 10.0%
• Eni S.P.A.: 12.0%
• Other: 8.0%. Additionally, Afentra plc has a significant interest in the block, with a 30% stake as part of its portfolio.

Fields and Infrastructure

Block 3/05 encompasses eight mature producing oil fields:

• Palanca
• Pacassa
• Bufalo
• Impala SE
• Impala
• Cobo
• Pambi
• Oombo.

All oil production from these fields is piped via the Palanca Terminal to a nearby storage barge prior to export.

Production and Reserves

• Production: The complex has been in production since the late 1990s, with peak production achieved in 1998. As of 2020, the production rate was approximately 7.3 million barrels of oil equivalent (boe) per year, and specifically, 70.44 million barrels of crude oil and condensate per year in 1998.
• Reserves: The remaining recoverable reserves of crude oil and condensate are estimated at 58.6 million barrels as of 2022. Afentra's 30% interest in the block provides certified 2P reserves of 32.9 million barrels and 2C resources of 13.1 million barrels net to Afentra as of January 2023.

Water Depth and Geology

The fields are located in shallow water with a depth of approximately 328 feet.

History and Development

The block was originally developed by Elf (now TotalEnergies) but is now operated by Sonangol. The acreage is an amalgamation of several historical licenses, including former Blocks 3/80, 3/85, and 3/91.

Production Outlook and Future Development

• Current Production: The field currently accounts for approximately 2% of Angola's daily oil output. Production is expected to continue until the field reaches its economic limit in 2045, with 89.35% of the total recoverable reserves already recovered.
• Future Development: To sustain current production levels, activities such as re-instating and sustaining waterfloods, integrity and maintenance projects, and optimization of the existing well stock are planned. Additional value creation potential includes production optimization, debottlenecking, workovers, access to behind-pipe oil pools, and longer-cycle brownfield development opportunities like infill drilling and the tie-in of undeveloped discoveries.

Environmental and Social Considerations

The joint venture is working to improve Environmental, Social, and Governance (ESG) characteristics, including decreasing emissions in line with zero flaring by 2030 and gas utilization opportunities.

Economic and Financial Aspects

The block benefits from existing infrastructure, which reduces capital costs. The economic analysis includes cash flow projections, discount rates, and oil price assumptions. Afentra sees significant upside value in the block through various development projects and optimization strategies.

In summary, Block 3/05 is a significant oil and gas complex in Angola, operated by Sonangol, with multiple producing fields, substantial reserves, and ongoing efforts to optimize production and improve ESG performance.