The Government of Angola has granted the rights to natural gas development and production in an offshore area of 540 square kilometres to state oil company Sonangol, Portuguese news agency Lusa reported.
Lusa said mining rights were granted to Sonangol to develop and produce hydrocarbons in the area of block 2/15, in a total of 512.8 square kilometres, and the 6/15 block, with an area of 34.085 square kilometres.
The concessions are for six and three years, respectively, for the research period, and an additional 20 years, in both cases, for production from the date of the declaration of commercial discovery of natural gas.
The first concession (block 2/15 and neighbouring areas of block 3) results from the discovery of gas on drilling the Garoupa Oeste well, in which Sonangol intends to carry out the evaluation, development and production of gas, and to “identify additional resources” in the area.
The second concession focuses on the Cegonha well of block 6/06, where Sonangol is responsible for development and production of natural gas. That area was previously handed back to the Angolan State, after the initial research phase ended, which declared the well in question was commercially viable.
Angola’s total oil reserves are estimated at between 3.5 billion barrels (proven) and 10.8 billion barrels (probable).
The country is the second largest oil producer in sub-Saharan Africa, with daily production of about 1.7 million barrels of crude oil. (macauhub/AO)