Eni Confirms 500-Million-Barrel Oil Discovery Offshore Angola

Eni has confirmed a significant offshore oil discovery in Angola’s Block 15/06, with preliminary estimates pointing to around 500 million barrels of oil in place, strengthening the country’s upstream outlook and underscoring the value of infrastructure-led exploration.

The discovery was made in the Algaita-01 exploration well, located roughly 18 kilometers from the Olombendo FPSO. Drilled in 667 meters of water by the Saipem 12000 drillship, the well encountered oil-bearing sandstones across multiple Upper Miocene intervals. According to the company, reservoir quality appears robust, with strong petrophysical characteristics confirmed through logging and fluid sampling.

The estimated 500 million barrels of oil in place mark one of the more notable Angolan finds in recent years. While recoverable volumes have yet to be disclosed, proximity to the Olombendo floating production, storage, and offloading vessel significantly enhances the development case. Tie-back opportunities to existing infrastructure can materially reduce capital intensity and accelerate time to first oil—an increasingly critical factor as international oil companies prioritize capital discipline and shorter-cycle projects.

Block 15/06 is operated by Azule Energy, which holds a 36.84% stake. The remaining interests are held by Sonangol E&P (36.84%) and SSI (26.32%). Azule Energy is a 50:50 joint venture between Eni and bp, formed in 2022 to consolidate the two companies’ Angolan upstream portfolios. The JV has since emerged as one of the country’s leading independent operators, with producing assets tied to multiple FPSOs, including Olombendo and N’Goma.

The discovery reinforces Angola’s continued exploration potential, particularly in mature basins where infrastructure is already in place. In recent years, Luanda has sought to reverse declining production through fiscal reforms and new licensing rounds aimed at attracting fresh investment. Discoveries such as Algaita-01 provide a tangible boost to those efforts, especially as operators focus on near-field exploration to maximize returns from existing hubs.

For Eni and bp, the find strengthens Azule Energy’s upstream pipeline at a time when both companies are recalibrating their portfolios amid energy transition pressures and volatile oil prices. Infrastructure-led exploration in established basins offers comparatively lower risk and faster monetization, aligning with broader industry trends toward high-margin, capital-efficient barrels.

Further appraisal work will be required to refine reserve estimates and determine a development plan. However, the combination of sizable oil in place, high-quality reservoirs, and nearby processing capacity positions Algaita-01 as a potentially material addition to Angola’s offshore output over the coming years.