Ultra-deepwater Namibe in doubt, despite ExxonMobil deal

US major’s investment boosted prospects of Angola’s beleaguered oil sector, but its blocks are unlikely to be economically viable without a crude price rebound

Despite ExxonMobil signing a risk service agreement to become the operator of Namibe deepwater blocks 30, 44 and 45 in late October, it remains far from certain that oil will be produced in the foreseeable future. Namibe’s output will depend on the size and nature of any discoveries as well as the quality of the reservoirs, says Emma Richards, a senior industry analyst at Fitch Solutions. ExxonMobil’s Namibe blocks are located 50-100km from Angola’s coast at depths of 1,500-3,000m, far beyond Angola’s proven oil reserves in the Lower Congo and Kwanza basins. “Ultra-deepwater wells are extremely costly to drill, and there is not much scope for that type of big-ticket spending” Richards,