Italy’s ENI offers record US$902 million for oil bloc in Angola

6 April 2006

Lisbon, Portugal, 06 April – Italian oil company ENI has offered US$902 million to control the non-explored part of bloc 15 of the Angolan offshore area, a world record offer, according to a report in Portuguese weekly paper Expresso.

The paper quoted Portuguese lawyer and representative of Chevron in Angola, Agostinho Pereira de Miranda, who said that offers for similar situations were usually of around US$350 million.

The lawyer also said the bloc covered an area of over 400 square kilometers and was put up for sale when Us company Exxon and Angolan state oil company, which held the concession, failed to come to an agreement.

The second-largest offer came from a Chinese state company and was of uS$750 million. Proposals were opened Monday.

Miranda also said that to this offer a further US$400 million would have to be added for exploration of that area of bloc 15 and that the high value of the offer implied that the Italian company expected that the well would deliver a minimum of 1 billion barrels and that oil prices would remain at over US$50 a barrel. (macauhub)