Tuesday , May 24 2022

Angola Bats to Abolish Oil Investigation


On Saturday, almost two decades after securing initial rights, the total CEO of Patrick Pouyanné in Luanda was to break the ribbon on a $ 16 billion oil project. It is not clear when he or his peers crack the bubbly opening in Angola again.

(Picture: Total)
(Picture: Total)

Without another mega project like Total Kaombo on the horizon and fields in old, the second African Africa's raw producer faces a steep decline unless it is able to regenerate the investigation in what He has once been one of the world's most exciting outbound forecasts.

Sonangol, a state oil company, is negotiating contracts for new blocks with oil majors and Angola plans to hold an auction next year, the first tender for audit rights since 2011.

It raises against time to a country where oil accounts for 95 per cent of exports and about 70 percent of government revenue. Luck also plays a part, as it is always explored when a warranty can never be found in oil.

But without new projects, output could drop to 1 million barrels a day by 2023, according to the oil ministry. That's down 1.5 million today and almost half what Angola did a decade ago. The country is at risk of breaking its OPEC quota and is finding it hard to secure long-term animal feed for its $ 10 billion liquid natural gas plant.

President João Lourenço won the August 2017 election promising "economic miracle" in Angola, which despite its oil wealth battles to provide basic services to a growing and growing population, which grows on 3 percent per year. But falling oil production means that a third consecutive cut is expected in 2018, even though annual inflation runs at 18 per cent.

To turn things out, Angola has asked international oil companies to go to the board, offering better financial terms and more co-operation.

With the time of exploring the first oil on new areas of anything between five and 10 years, Angola also offers tax breaks to encourage companies to connect the current peripheral finds to active production platforms.

There are signs that the measures are working, although some oil experts think about the cost for a South African country.

"The level of audit activity in Angola is beginning to change," said Saturnino's Sonangol Chair, on Saturday.

It is expected between five and 10 new concessions to sign next year.

Exxon, he said, has shown an interest in some blocks in the southern Namib basin of Angola, while higher discussions are being held with BP, Equinor and ENI for the rights to deeper blocks at sea 46 and 47.

BP and ENI rejected comments. Equinor and Exxon did not respond immediately to a request for comments.

A total, which acts 40 percent of Angola production, intends to drill its first examination well in four years. Under 3,630 meters of water on block 48, it will be one of the deepest in the world.

"We hopefully be a play player for the deep in Angola," said André Goffart, Senior Vice President of Development. "We see a wave of new investigation in Angola."

Paralysis Years
These signs come from a fresh examination after a period of permanent barlyses due to lack of drill success, a decline in oil prices and a declining relationship between Sonangol and oil majors.

Angola's reserves are expensive to explore and develop, making it hard for shareholders when oil is $ 40. The number of phones operating off the Angola banks from 18 early in 2014 to only two in 2017, according to the Baker Hughes oil services company.

The steep price reduction of 2014 came just as companies wear the failure to find oil reserves such as Brazil under a layer of salt on the African side of the Atlantic. The search for "ex-salt Angolan" led to some of the most expensive fountains that had ever been drilled and explored.

Critics say that the situation is exacerbated by Isabel dos Santos, the former president's daughter and the former Sonangol chairman, whose new leadership projects are coming to an end. Dos Santos denies allegations of mismanagement, saying that she has helped turn a company almost bankrupt.

"There are currently few places in the world, where most oil is in a negative situation as it is here," said one international oil act in Luanda provided it was anonymous.

Some local experts are afraid to deal with Angola as strikingly too beneficial to the companies, although the details remain privately.

"If Angola gets too much, it could create problems further down the line," said José Oliveira, an oil expert at the Luanda Catholic University.

But the country has no choice of considering the decline in the forthcoming production and lack of money or expertise to lead the drill campaigns itself.

It was asked to be back in the next few years to launch another giant project such as Kaombo, Total Pouyanné cuts. "We will see what we can find," he said. "It's possible."

(Report by Stephen Eisenhammer; Editing by Catherine Evans)

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