Angola has moved closer to developing a major offshore gas and condensate project after state-owned Sonangol completed drilling and testing at the Katambi-2 appraisal well in the frontier Benguela Basin.
The well, located in Block 24 about 370 kilometers southwest of Luanda, produced a stabilized flow of 41 million standard cubic feet of gas per day and 1,160 barrels of condensate per day during initial testing. Preliminary results indicate that Katambi-2 could eventually produce more than 100 million standard cubic feet per day, according to Angola’s National Agency for Petroleum, Gas and Biofuels (ANPG).
The results represent a significant turnaround for a discovery that had previously been considered commercially challenging. Katambi-1, drilled by BP more than a decade ago, identified hydrocarbons in the area, but BP later relinquished its interest after determining that the discovery was not economically viable under the conditions at the time.
Sonangol drilled Katambi-2 approximately 1.3 kilometers from the original well to reassess the reservoir and evaluate whether improvements in geological understanding, technology and market conditions could support a development. The appraisal well crossed two productive intervals with a combined thickness of approximately 331 meters.
According to ANPG, the reservoirs showed average porosity of between 9% and 12%, as well as good permeability. Those measurements were better than the results recorded at Katambi-1, suggesting that the reservoir may be more extensive and productive than initially believed.
The well also delivered Angola’s first full flow test of a non-associated gas reservoir. Non-associated gas is produced from a reservoir where gas exists independently of crude oil, unlike associated gas, which is extracted alongside oil production. The distinction is important for Angola as the country seeks to build a dedicated gas industry and reduce its reliance on oil revenues.
Initial testing found no water or hydrogen sulfide, a toxic and corrosive gas commonly known as H₂S. The absence of both substances could simplify processing and strengthen the commercial case for developing the discovery, although a final investment decision will depend on further reservoir studies, development costs, infrastructure requirements and market conditions.
“Initial tests recorded a stabilized production of 41 million standard cubic feet per day of gas and 1,160 barrels per day of condensate,” ANPG said in its announcement, and added that the findings reinforced the economic viability of developing the discovery and could contribute to optimizing national production.
The success comes as Angola tries to reverse years of declining oil output and attract new investment into offshore exploration. Crude production has recently stabilized at roughly 1.1 million barrels per day, but mature fields and declining exploration activity have raised concerns about the country’s long-term production outlook.
Angola has also begun to develop its non-associated gas resources. Earlier this year, Azule Energy, the joint venture between BP and Eni, launched production from Quiluma, described as Angola’s first non-associated gas development. Katambi could add momentum to that emerging gas sector, potentially supplying domestic industry, power generation, liquefied natural gas facilities or regional export markets.
However, the appraisal success arrives against a difficult domestic energy backdrop. Angola’s mineral resources, oil and gas minister, Diamantino Azevedo, acknowledged on August 6 that the country was experiencing a fuel shortage. He cited rising domestic consumption, higher international prices and logistical difficulties, while saying Sonangol was facing challenges supplying fuel nationwide.
The situation highlights the contrast between Angola’s position as one of Africa’s leading crude producers and its continued dependence on imported refined fuels. A commercially successful Katambi development would not immediately resolve the country’s gasoline and diesel shortages, since raw gas and condensate require processing and infrastructure. It could nonetheless strengthen domestic energy security over time, improve state revenues and provide a new platform for offshore gas investment.
For now, Sonangol and ANPG are expected to continue evaluating the well and the wider Katambi discovery. The next steps will likely include further reservoir modelling, appraisal planning, infrastructure studies and an assessment of whether production can be integrated with existing offshore and onshore facilities.
By proving Katambi-2 can produce over 100 million cubic feet of gas daily, Sonangol transformed an abandoned 2014 discovery into Angola's next major offshore gas project.
