Sonangol reserves stake in Angolan offshore oil block for Portugal’s Galp

3 January 2006

Lisbon, Portugal, 3 Jan – Angolan state oil company Sonangol has agreed to let Portuguese-state controlled energy firm Galp take a stake in future developments in the lucrative deepwater block 15, according to a media report.

The Africa Monitor newsletter, published in Lisbon, said that a pact between the two energy firms was made during a recent visit to Portugal by Sonangol’s chief executive, Manuel Vicente, and the Galp board.

Meetings between Sonangol and Galp executives were also attended by Americo Amorim, whose Amorim industrial group recently acquired a 32 percent stake in Galp along with Sonangol, Africa Monitor reported.

Analysts say Sonangol’s pledge to give Galp a share in remaining production wells in block 15, whose licensing round results are due to be announced in March, is to compensate the Portuguese firms for its unfruitful participation in block 33.

Sonangol is the concessionaire for all Angola’s hydrocarbon reserves.

Block 15 currently produces 450,000 barrels daily, a similar output to block 0 off the coast of the oil-rich Cabinda enclave.

ExxonMobil subsidiary Esso operates block 15 with a 40 percent holding. The other shareholders are BP/Amoco (26.6 percent), Agip (ENI), (20 percent) and Statoil (13.3 percent). (macauhub)