Sonangol, the state-owned oil company of Angola, has announced the start of a sale process for a portion of its stakes in eight offshore and onshore oil blocks (some in operation, others in exploration and development) to reassess its investment portfolio and ensure compliance with and implementation of its exploration and production strategy, which aims to increase its production from 2% to 10% by 2027.
Sonangol’s list was presented on Monday during the launch of the sale process, which was witnessed by the Angolan Minister of Mineral Resources, Oil and Gas, Diamantino Azevedo.
Sonangol aims to sell between 15 to 20% in block 03/05, an equivalent amount in block 4/05, 30 to 65% in block 5/06, 30 to 70% in block 18, and up to 10% in blocks 15/06, 27, and 31.
According to Ricardo Van-Deste, head of the Executive Committee of the Exploration and Production Unit (UNEP), the firm also intends to lower its financial exposure and participation interest while working to improve the administration of Sonangol’s crude oil survey rights.
Investors that are interested in participating in the process must submit their proposals on or before August 6, 2021. If an interested company meets the essential qualifications to be deemed a member of the national concessionaire, they will not be subject to a public tender or direct negotiation, as the national oil company has assured speedy admission into the Angolan market.
Investors will also face a decrease in geological and financial risks for assets in production, as well as a share of efforts and financial risk for blocks in the exploration phase, according to Sonangol.
ABOUT ONE OF THE BLOCKS – Block 3/05
- It is located in the Congo Basin (offshore).
- It has 54 drilled wells (33 exploration(s) and 22 under evaluation).
- There are eight fields in production in this block. They are Pacassa, Búfalo, Palanca, Impala-Southeste, Cobo, Pambi and Combo.
- There are 11 production and processing platforms.
- It has reserves of 121 48 million barrels of crude, with an accumulated production of 1,387 million barrels.
The characteristics of the other seven blocks were also presented to potential investors.
