At the forefront of Angola’s gas evolution

Angola

Adriano Mongini, then-CEO of Azule Energy, talks to The Energy Year about developing Angola’s first non-associated gas project and the key role of the Agogo Integrated West Hub in the country’s oil production. Azule Energy is an incorporated joint venture between bp and Eni that operates as an integrated standalone energy company in Angola and Namibia.

This interview is featured in The Energy Year Angola 2025

How are Azule Energy’s assets and projects supporting Angola’s goal of maintaining oil production at 1.1 million bopd by 2030?
Over the past year, we have been pushing forward our developments and finalising startup projects that began around the time Azule Energy was formed. One milestone was the FID on the NGC [New Gas Consortium], approved just a week after Azule Energy launched in August 2022. This marks Angola’s first non-associated gas development, with production scheduled now to begin in early 2026. However, we plan to inaugurate the onshore treatment plant by the end of November and start production before the year ends.
This project is significant not just as a technical milestone but because of the potential of the gas value chain. Gas delivered onshore can support domestic industries such as chemicals, fertilisers and urea production. We are proud to lead this evolution in Angola’s gas sector. In fact, a few weeks ago, we drilled Angola’s first gas exploration well, Gajajeira-1 in Block 114, which yielded approximately 1 tcf [28.3 bcm] of gas and 100 million boe of condensate. This well de-risks other prospects nearby, and further exploration is planned in the same block. This well is strengthening our position as the leader of non-associated gas production in Angola.
In terms of oil, the Agogo Integrated West Hub project is vital. The FPSO Agogo has just started production, currently at 30,000 bopd, with a planned peak of 175,000 bopd expected by the end of 2026. We are currently drilling with three rigs in Block 15/06, and plan to continue with two rigs throughout next year. This project alone will deliver close to 15% of Angola’s production at peak, and it supports Azule Energy target of reaching 250,000 bopd of equity production by 2026. Operated production is set to rise from 220,000 to 350,000 bopd by then.

What milestones are on the horizon for the Agogo Integrated West Hub project?
The full capacity of the project is 175,000 bopd, that includes both the Agogo and Ndungu reservoirs. The next big milestone is the startup of Ndungu, scheduled for February. While it hasn’t received as much of the spotlight as Agogo, it plays a critical role. When we discovered Ndungu in February 2022, Agogo was already well into development, including a dedicated FPSO. Instead of delaying its development, queuing to await capacity availability in the Agogo FPSO, we decided to use N’Goma – an FPSO originally set for decommissioning – for Ndungu.
This dual-FPSO strategy allows us to reach the 175,000-bopd peak. Without it, the peak rate of the project would have been limited to the Agogo FPSO’s 120,000-bopd capacity.
Running two FPSOs in parallel for two years lets us manage production at peak, after which Agogo alone will be sufficient as decline sets in. We also leveraged existing contracts and equipment across both projects to accelerate timelines and optimise costs.

How are regulatory incentives for mature fields shaping Azule Energy’s development in blocks 31, 18, and 31/21?
Block 31 and Block 18 are both mature. Block 31/21 is the greenfield extension of Block 31. The government – through the ANPG [National Oil, Gas and Biofuels Agency] and MIREMPET [Ministry of Mineral Resources, Petroleum and Gas] – has done an excellent job in creating a framework to stimulate further investment in these brownfields. New incentives support additional wells and near-field exploration, extending FPSO lifespans.
The marginal fields legislation has also helped improve fiscal terms, making smaller fields viable. One example is the PAJ [Palas, Astraea and Juno] project, now expanded into Greater PAJ with additional reservoirs from Block 31/21. This project will likely be the first to benefit from the marginal fields fiscal terms framework.
These reforms have made Angola’s fiscal terms among the best in Africa. We’re seeing a resurgence of interest: ExxonMobil is expanding, Shell and Petrobras are returning, Petronas is entering, and the M&A activity is intense. Angola has gone from being overlooked to one of the continent’s most attractive investment destinations.

How important is government approach and institutional alignment in supporting private investment?
Fiscal terms are important, but attitude matters more. Angola excels here. Institutions such as ANPG and MIREMPET along with Sonangol are aligned and work together to create a stable, efficient regulatory environment. You don’t find contradictory messaging between entities, which is not uncommon elsewhere.
Even when the Ministry of Finance considers short-term optimisations, ANPG serves as an effective interface, maintaining long-term investor confidence. This consistency and clarity are essential for long-term planning and encourage continuous investment in Angola.

How does Namibia fit into Azule Energy’s regional expansion plans?
Namibia is an exciting frontier. We recently farmed into PEL 85 with Rhino Resources, and while they are the current operator during exploration, Azule will take over for development. We’ve drilled two wells and are currently drilling a third. The Capricorn well stands out as one of the best in the Orange Basin so far, with good fluid properties, good petrophysical characteristics, reasonable water depth and promising nearby prospects.
We’ve decided to establish a long-term presence in Namibia, opening a branch and planning a full office by next spring. While the geology is complex, and many wells still need to be drilled, we are hopeful. The country aims to produce oil by 2030, and we believe we could be among the first to bring a project to FID and then to production.

What are the company’s main decarbonisation and social impact projects?
Our two main offset projects are a distribution of efficient cookstoves and a REDD+ (Red Plus) Project: a climate change mitigation initiative under the framework of Reducing Emissions from Deforestation and Forest Degradation. The cookstove project, already underway, aims to reduce emissions and improve family safety. It also creates jobs, as the stoves are manufactured in Angola.
The REDD + project is still in its early stages. Angola lacks legislation for forest preservation, so we are starting to work closely with the Ministry of Finance and the Ministry of Environment to make this happen. Both projects are essential to generating carbon credits to offset the emissions we can’t eliminate.

Where does the Caraculo photovoltaic project stand?
The first 25-MW phase was completed two years ago. We are in discussions with Sonangol, our 50-50 partner, on deploying the second 25-MW phase. We’re still negotiating to ensure the second phase makes economic sense, but the site is prepared and the design is ready.

What is Azule Energy’s strategic vision for the next five years?
This year marks the end of a cycle, with major developments such as Agogo and NGC nearing completion. But we are also laying the foundation for the next cycle, with 18 exploration wells in 2025-2029 including the Namibia appraisals and a critical well in Block 47. This ultra-deepwater well, starting in the coming weeks, could be a game-changer.
Our exploration track record is strong, with a more than 80% success rate. This success allows us to expand within Angola and identify new M&A opportunities. Financially, we are robust and self-financed, but we also attract outside investment. Earlier this year, we issued a USD 1.2-billion bond – the largest bond issued this year in sub-Saharan Africa – very successfully, demonstrating our credibility.
We’re also leaders in decarbonisation. The Agogo FPSO features eight innovations for emissions reduction. It includes the world’s first offshore carbon capture model, combined-cycle power generation and kinetic energy recovery from discharged cooling water. These initiatives make it the lowest-emission FPSO globally. Pairing the low emission with carbon compensation initiatives, our ambition is to make it carbon neutral – the first in Angola, and only the second in Africa.

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