Production of 1 barrel of oil in Angola costs US$1.77

4 October 2007

Luanda, Angola, 4 Oct – Production of one barrel of oil in Angola costs an average of US$1.77 and costs associated to operation are estimated at US$2.89, the chairman of Angolan state oil company Sonangol, Manuel Vicente said in Luanda Tuesday.

On giving a history of oil production in Angola, at the opening of the II Conference and Regional African Exposition on Oil Exploration and Production in Deep Waters, Vicente said that the studies carried out, from 1980 until this year, showed that the investments made had been compensated by the level of reserves found, acceptable levels of production and high prices on the international market.

He also said that 75 percent of total production of crude oil (1.7 million barrels per day) in Angola was from deep waters.

From 1976 to 2007, the sector saw accumulated production of 4.5 billion barrels of oil.

Angola’s production is currently estimated at 1.7 million barrels per day and in 2008 this is expected to rise to 2 million barrels per day.

Vicente said that investments in surveying, exploration and development in the Angolan oil sector could reach US$66 million between 2008 and 2011.

In the 1990s alone, he noted, investment in the sector totaled US$15.5 million in order to start production in deep waters.

Investment between the end of the 1990s and 2007, he said, totaled some US$48.3 billion.

According to Vicente, since Sonangol was created in 1976 and the end of the 1990s, US$6.1 billion were invested in the development of shallow water blocs in the Kwanzaa basin. (macauhub)