Red Sky Energy enters Angola with major offshore stake

LUANDA, January 3, 2025 – Australian-headquartered Red Sky Energy has taken a 35% interest in offshore Block 6/24 in Angola’s Kwanza Basin, the company announced on Friday.

Red Sky and the National Oil, Gas and Biofuels Agency signed a risk service contract for the stake. The block partners are Acrep (15%) and Sonangol E&P (50%), the block’s operator.

Block 6/24 is located 12 kilometres offshore of Angola in an area with several oil discoveries and high prospectivity. The block has nine drilled wells. One of these wells includes the Cegonha oilfield discovery, which assessments show has commercial potential.

Andrew Knox, managing director for Red Sky, said, “Block 6/24 contains a potential commercial oil discovery that the JV partners plan to evaluate for early production and cash flow generation. The block also has substantial resource potential based on the existing 2D and 3D seismic data. The JV partners plan to prove up these resources, further improving the economics of the block. Several parties have expressed interest in providing 100% project finance for the development.”

The next steps for Red Sky in Angola include implementing a joint venture operating agreement with its block partners and receiving parliamentary approval for the risk service contract.

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