Sonadrill, the joint venture between Seadrill and a Sonangol affiliate, has signed a contract extension for the ultra-deepwater drillship Sonangol Quenguela offshore Angola. The extension, exercised via a seven-well priced option, adds approximately 480 days of work and pushes the rig's contracted operations through June 2028.

The extension comes amid a broader upstream drive in Angola, with new offshore projects and exploration results triggering robust rig activity. As contracts are extended and new rigs are deployed, Angola stands on the precipice of a new wave of commercial discoveries.

TotalEnergies Block 32 Operations

The Sonangol Quenguela rig is contracted by TotalEnergies at Block 32, home to the prolific Kaombo project. The company plans to develop oil across six deposits, with the block currently producing 230,000 barrels per day. The latest contract extension follows a December 2025 extension covering an additional ten months and will support drilling activities at the block, aligning with TotalEnergies' long-term exploration strategy in Angola.

"Our main challenge is to maintain and increase production," TotalEnergies Country Manager Martin Deffontaines stated at the Angola Oil & Gas Conference and Exhibition last year. "Another challenge is exploring new projects and production, and addressing declines. We are drilling one exploration well per year, which will help us increase production."

The Quenguela extension brings all three of Sonadrill's ultra-deepwater drillships under long-term contract in Angola. The Sonangol Libongos is working for Azule Energy, and the West Gemini is contracted to Sonangol E&P, with both units committed through 2027 and beyond.

Expanding Rig Activity Across Angola

The recent contract extension fits into a broader landscape of robust rig activity in Angola. On the same day the Quenguela extension was announced, AIM-listed independent Afentra confirmed that the Block 3/05 joint venture has signed a commercial agreement with Sonangol to use the Borr Grid jackup rig for a two-well drilling program in the shallow-water Lower Congo Basin.

The Pacassa SW exploration well is expected to spud within days, with a potential gross production uplift of around 9,000 barrels per day targeted across the program. Sonangol is financing the wells, with costs recovered from future incremental production revenues. The parallel activity across water depths points to the scale and breadth of Angola's current rig demand.

Drilling activity across both on- and offshore margins continues to grow. During the month of February, 12 drilling units were in operation, including one onshore drilling rig at the FS/FST Associations; one intervention vessel and the Jack Up Valaris at Block 1/14; six deep water units at Block 15 and Block 15/06; as well as a unit at Block 24 and Sonangol Quenguela at Block 32. Five shallow water units were also operational.

Recent Exploration Discoveries Drive Investment

Angola currently produces approximately one million barrels per day, down from a peak of roughly two million barrels per day in 2008. The ANPG is targeting USD 70 billion in upstream investment through 2030 to stabilize and grow that figure.

Azule Energy, Angola's largest independent producer, has delivered two material discoveries in the past eight months that illustrate where new barrels are expected to come from. In February 2026, the company announced the Algaita-01 find on Block 15/06, encountering oil-bearing sands 18 kilometers from existing production infrastructure.

In July 2025, Azule's Gajajeira-01 well on Block 1/14 encountered over one trillion cubic feet of gas plus up to 100 million barrels of condensate. These developments highlight the exploration potential across Angola's offshore basins, making a strong case for future drilling activities.

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