In less than two decades, Somoil was able to position itself as one of the largest private oil companies operating anywhere in Angola today. Yet at the same time, that level of status wasn’t enough. Like many similar organizations operating in Africa in the modern era, the company has already outlined a plan to guarantee significant growth over the next few decades and beyond. This is true for a wide range of different reasons, all of which are worth a closer look.
The Future of Somoil is a Bright One
Much of the future outlook for Somoil in Africa is based on the company’s current trajectory. Currently, Somoil operates three blocks and can produces as many as 50,000 barrels of crude oil in a single day. While that is already impressive, the company partnered recently with Sirius Petroleum – an organization based out of London – for a $336 million deal. That deal, which will also bring in another Angolan company called Sonangal, will see participating interest in deepwater Blocks 18 and 31 acquired by Somoil. Right now, those blocks are operated by BP.
Not only that, but Somoil also purchased interests in oil Blocks 14 and 14K in 2022 from TotalEnergies last year.
Based on all of that aggressive activity, it should come as a surprise to nobody that leadership at Somoil said that they are “very open” to more partnerships such as this moving forward. Because of that, the probability of Somoil achieving its rapid expansion growths is at an all-time high.
Indeed, Somoil is a legitimate success story in the industry. One that sets an example of not only what is possible to accomplish in the region, but what a company with a forward-thinking outlook can really do given all of the changes going on right now in the oil and gas sector in Africa. Over the last decade in particular, many companies have been divesting themselves of their interests in the country. They’ve been trying to adjust their existing portfolios in an attempt to lower their global emissions.
Because of that, independent oil and gas producers like Somoil have been stepping in to pick up the pieces, so to speak.
In a lot of ways, this could not have come at a better time. Experts have said in the past that when so many different major corporations divest themselves from their oil and gas assets in Africa, this isn’t exactly a welcome development. However, it is encouraging to see just how ready and willing independent organizations are to come into the area and make their presence known. They clearly understand that this is a significant opportunity for rapid growth over the next few years and it’s very likely that time will prove them right.
Exactly what happens within the oil and gas industry in Africa over the next 10 years remains to be seen, but one thing is certain: experts will be watching those independent companies like Somoil very, very closely.