Angola: Onshore oil drilling to cost US$54 million

6 November 2007

Luanda, Angola, 6 Nov – Onshore oil drilling in Angola’s Cabinda enclave will require an investment of US$54 million, according to a statement from the concession-holder, Australian oil company Roc Oil.

The statement cited by newspaper Jornal de Angola added that two of the three wells explored in Cabinda’s onshore area were not commercially viable.

“The second and third wells – Cevada-1 and Soja-1 – showed good indications of oil, but were considered to be commercially unfeasible,” the statement said.

Oil found in the first well – Massambalala-1 – is of the thick viscous type rather than the “light” oil frequently found in Angola and other West African countries, but which is valued by the market, and its commercial feasibility is being assessed.

The amount of oil in this well is five times higher than initially projected – 170 million barrels, of which around 20 percent will be able to be extracted, according to initial estimates.

Roc Oil has 60 percent of the bloc and operator status and is partnered by Sonangol (20 percent) and Force Petroleum (20 percent).

A consortium led by US company Devon Energy Corp, and including Portuguese company Galp is also interested in on-shore drilling in Cabinda. (macauhub)