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,
Also in this section
28 April 2026
Oil traders warning of $200/bl oil are wrong, and the market should be wary of proclamations that the impact of the oil shortage has only begun to be felt and a that a ‘harsh adjustment’ is coming—even for industrialised nations
28 April 2026
Restoring supply from Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Iraq involves complexities far beyond simply adjusting operational controls
28 April 2026
Datacentres will guzzle power at a ferocious rate, but the impact on wider energy markets will be far more complex than previously thought
28 April 2026
The key energy player faces balancing regional routes, political complexities, and creating a clear strategic vision for energy security
