Sonatrach and Eni Partner in Algeria
Algeria’s state energy company Sonatrach and Italian oil major Eni have signed a 30-year, $1.35 billion production-sharing contract to explore and develop hydrocarbons in the Zemoul El Kbar area of the Berkine Basin, located 300 km southeast of Hassi Messaoud, Algeria.
Covering a 4200-km2 area, the contract includes a 7-year exploration phase and an option for a 10-year extension. Projected production over the contract period is estimated at 415 million BOE including 9.3 billion m3 of gas.
The deal includes a $110 million allocation for research.
Azule Makes Discovery in Angola
Azule Energy, a joint venture between BP and Eni SpA, announced a major gas discovery at its Gajajeira-01 well offshore Angola in Block 1/14. The block is jointly operated with partners Equinor, Sonangol E&P, and Acrep SA, alongside ANPG.
The well was drilled 60 km offshore in early April 2025 in 95 m water. It encountered gas- and condensate-bearing sandstones in the Lower Oligocene target LO100. Initial assessments indicate over 1 Tcf and up to 100 million bbl of associated condensate. The discovery confirms a working hydrocarbon system, promising expanded exploration in the Lower Congo Basin.
The company announced it will continue evaluating the potential while targeting the next interval, LO300.
Shell Moves Forward in Orange Basin
Shell has received environmental approval to drill up to five deepwater wells in South Africa’s Northern Cape Ultra Deep Block, located in the Orange Basin. The area, adjacent to Namibia’s offshore blocks where major discoveries have been made by TotalEnergies, is considered highly prospective. The wells, reaching depths of 2500 to 3200 m, signal Shell’s growing interest in tapping South Africa’s offshore potential.
This move comes amid South Africa’s increasing energy insecurity, marked by declining domestic refining capacity and a heavy reliance on imported fuels. If successful, Shell’s exploration could strengthen national energy security and boost economic development.
The Orange Basin is emerging as a regional hotspot with TotalEnergies also planning to drill nearby Block 3B/4B by 2026.
OMV Petrom Makes Discovery in Romania
OMV Petrom, southeastern Europe’s largest integrated energy producer, announced the discovery of a new natural gas reservoir in Spineni, approximately 70 km northeast of Craiova, Romania. The 1 Spineni exploration well, drilled to a depth of about 4800 m, confirmed the presence of natural gas and condensate. Well testing revealed a production potential of 180,000 m3 of gas and 25 m3 of condensate per day, equivalent to roughly 1,300 BOE/D.
Identified through 3D seismic data collected in 2022, the discovery is considered commercially viable, with the development plan currently pending approval. OMV Petrom has invested more than $17 million in the exploration phase of the project.
This discovery aligns with OMV Petrom’s broader strategy to counteract production decline in mature fields by pursuing near-field exploration opportunities and supporting Romania’s energy security.
Valaris Strikes Drilling Deal With Anadarko
Valaris Ltd. has secured two major contracts with Anadarko Petroleum, a subsidiary of Occidental Petroleum, for offshore drilling in the Gulf of Mexico. The agreements include a 940-day extension for the Valaris DS-16 starting in June 2026, and a new 914-day contract for the Valaris DS-18 beginning in late 2026.
Together, these deals add approximately $760 million to Valaris’s revenue backlog. “We’ve secured approximately $1.9 billion in new contract backlog so far this year, reflecting solid execution of our commercial strategy and our ability to deliver safe and efficient operations for our customers,” said Valaris President and CEO Anton Dibowitz.
Petrobras Picks Up 13 Blocks
Petrobras has acquired 13 offshore exploration blocks—10 in the Foz do Amazonas Basin (in partnership with ExxonMobil) and three in the Pelotas Basin (with Petrogal Brasil)—during Brazil’s 5th Permanent Concession Offer Cycle.
In the first five blocks in the Foz do Amazonas Basin, FZA-M-1040, FZA-M-1042, FZA-M-188, FZA-M-190, and FZA-M-403, Petrobras will serve as operator, with a 50% stake, in partnership with ExxonMobil (50%). In the remaining five blocks in the Foz do Amazonas Basin, FZA-M-477, FZA-M-547, FZA-M-549, FZA-M-619, and FZA-M-621, ExxonMobil will serve as operator, and Petrobras will have a 50% stake.
In the Pelotas Basin, Petrobras acquired blocks P-M-1670, P-M-1672, and P-M-1741 in partnership with Petrogal Brasil SA. Petrobras, with a 70% stake, is the operator in the blocks, in partnership with Petrogal Brasil (30%).
The acquisition adds nearly 9600 km² to Petrobras’s portfolio and aligns with its long-term plans to expand ultradeepwater exploration, replace oil reserves, and support Brazil’s energy security.
Partnership Picks Up License in Algeria
TotalEnergies and QatarEnergy have been jointly awarded the Ahara exploration license in Algeria’s 2024 Bid Round, the first under the new hydrocarbon law No. 19-13. Covering about 14900 km2 at the intersection of the Berkine and Illizi Basins, the Ahara block will be operated by TotalEnergies during the exploration and appraisal phases. Both TotalEnergies and QatarEnergy hold a 24.5% stake, while Algeria’s national oil company Sonatrach retains the 51% majority interest, in line with local law.
TotalEnergies’ presence in Algeria includes operations spanning the entire energy value chain. In upstream activities, the company holds interests in the Tin Fouyé Tabankort II (TFT II) and Timimoun gas fields, as well as oil fields in the Berkine Basin (Blocks 404a and 208). In 2023, these assets produced 51,000 BOE/D.
Significant Discovery in Cyprus’ Block 10
A consortium led by ExxonMobil and QatarEnergy has made a second significant natural gas discovery in Cyprus’s offshore Block 10 at the Pegasus-1 well, located 190 km southwest of the island. The well was drilled by the Valaris DS-9 drillship in 1921 m of water with preliminary findings indicating a 350-m gas-bearing reservoir. The company announced further evaluation is needed to determine commercial viability.
This is the partnership’s second discovery in Block 10, following the Glaucus-1 find announced in February 2019 and the Glaucus-2 appraisal completed in March 2022, which confirmed a high-quality gas-bearing reservoir.
ExxonMobil serves as the operator of the Pegasus-1 well.
Ukrainian Well Announced as High-Yield Producer
Ukraine’s state energy company Naftogaz, through its subsidiary Ukrgazvydobuvannya, announced it launched a new high-yield natural gas exploration well producing 383,000 m3 per day. The 5.7-km deviated well was completed and commissioned 6 weeks ahead of schedule. The company is responsible for most of Ukraine’s gas production, but a series of Russian missile strikes earlier this year severely damaged its facilities, cutting output by up to 40%.
The company announced it also signed four contracts with Poland’s Orlen for the delivery of 440 million m3 of US LNG, including a recent deal announced on 2 July for an additional 140 million m3.
Hess Relinquishes Suriname Holdings
Hess (Suriname II) Exploration Ltd. announced it will relinquish Block 59 in offshore Suriname, returning the acreage to Staatsolie following the completion of its minimum work obligations. Hess became the sole stakeholder in the block in July 2024, following the withdrawal of its former partners ExxonMobil and Equinor (formerly Statoil), who transferred their shares to Hess because of high exploration risks.
Block 59, located in the far northwest of Suriname’s offshore territory, spans approximately 11480 km2 in ultradeep waters ranging from 2700 to 3500 m. Since the production-sharing contract was signed in July 2017, over 6000 km of 2D and 9000 km2 of 3D seismic data have been acquired. The data did not yield sufficient promise for a commercially viable oil field, leading the original partners to exit and, later, Hess to conclude that the block no longer aligned with its strategic exploration goals.
With Block 59 returning to Staatsolie, the area will be reclassified as open acreage and incorporated into the company’s broader strategy of attracting international investment across Suriname’s offshore domain.
Perenco Acquires Woodside’s Trinidad and Tobago Assets
Perenco has finalized its $206 million acquisition of the Greater Angostura offshore oil and gas assets from Woodside Energy in Trinidad and Tobago. The deal includes seven platforms, subsea infrastructure, and onshore terminal facilities. Combined, these contribute about 12% of the country’s gas production (300 MMscf/D or 50,000 BOEPD).
Perenco’s CEO called the acquisition a strategic move to boost the company’s gross production above 100,000 BOEPD and deepen ties with the Trinidadian government.
Perenco made earlier expansions in the region, including the CAFI asset acquisition from BP and ongoing development in the Onyx field.
