Tuesday, November 3, 2009
Angola: Nation Enhances Profile With Rising Reserves
Angola's contention for the position of Africa's leading petroleum resource producer gained more points weekend when the country's reserves capacity received a boost with a deepwater hit.
French multinational major, Total, announced that its subsidiary TEPA Ltd. and Sociedade Nacional de Combustíveis de Angola (Sonangol EP), made an oil discovery on block 17/06, in the deep waters of the Angolan offshore.
Total declared that Gardenia-1 drilled in a water depth of 977 meters to encounter the find, making it the first well and the first discovery made on Block 17/06.
The company stated in a declaration that the well discovered hydrocarbon reservoirs, both in the Miocene and the Oligocene, adding that the well produced 4,000 bpd on the Miocene interval. Output from the well, it said, was of 25 API° oil during tests.
The company said this first discovery of Gardenia-1 confirms the potential of the north-western part of Block 17/06 and further drilling on the block will start on the Q4.
Sonangol E.P. is the concessionary of Block 17/06. TEPA (Block 17/06) Limited is the operator with a 30 percent stake.
The other partners on Block 17/06 are Sonangol Pesquisa e Produção, S.A. (30 percent), SSI Seventeen Limited (27.5 percent), ACREP Bloco 17 S.A. (5 percent), Falcon Oil Holding Angola, S.A. (5 percent) and PARTEX Oil and Gas (Holdings) Corporation (2.5 percent).
The discovery has added more attraction to the Angolan status as a leading source of crude oil in Africa, racing closely after Nigeria in the race for the continent's prime destination for petroleum investments.
Angola which currently holds the presidency of the Organization of Petroleum Exporting Countries (OPEC) and will host the next meeting of the oil exporters' group had at several times in the last two years topped export chart from Africa as security tension force huge volumes of shut in Nigeria.
Angola's rising hydrocarbon reserves and production recommended its entry into the OPEC at time when production from Indonesia was fast declining, making the coincidence a perfect replacement to retain the organization's membership size after withdrawal of the Asian producer.
Indonesia whose status as an oil producer suddenly changed to that of net oil importer pulled out from the group following sharp decline in reserves and output. At the same time, Angola which was smarting from protracted internal civil war launched intense exploration and production of oil as means of generating revenue to fund economic recovery.
Multinational players whose operations in Nigeria are fraught with community crises and alterations in fiscal arrangements find Angola as new investment haven, making frantic efforts to grab acreages for exploration.
The attention on Angola also carried with it huge investment portfolios which have resulted in recent exploration successes that guarantee further investments development and production.
28 October 2009
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