Sonangol launches new off-shore tender for Angolan oil

29 November 2005

Luanda, Angola, 29 Nov – Angola’s national oil company (Sonangol) said Monday in Luanda it will launch a new international tender for off-shore oil exploration off the coast of Angola.

The blocs to be tendered in deep (North of Luanda and Benguela area) and shallow (North of Luanda), have oil deposits estimated at 6.2 million barrels, including both light and heavy oil.

Sonangol officials say that the deposits may total up to 10.4 million barrels.

Carlos Saturnino, director of Sonangol, said that a new time in oil exploration was being opened up considering that, “the tender will be public for the first time in the last 29 years”.

The Angolan government wants the help of foreign investment in oil to boost production to 2 million barrels per day in 2008 compared with the current 1.3 million barrels per day.

According to Chairman and CEO of Sonangol, Syanga Abílio, many international companies have shown interest in the tender including Chevron, Total and ExxonMobil. According to Abílio, “oil production in Angola is increasing 25% per year at a time when prices are very good”.

The rules for the tender will be published on December 13 and the results are expected to be announced by March 2006.

Sonangol officials also said that the government was expected to re-start oil exploration on land, a business that was brought to a halt in the 1970s due to Angola’s civil war.

Australian company Roc Oil earlier this year began prospecting for oil in the Northern enclave of Cabinda and the government is hopeful that other companies will join Roc Oil’s search. (macauhub)