Angola must find new reserves – Minister

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Angola’s Minister of Mineral Resources and Petroleum Diamantino Azevedo said Angola would maintain the current status in oil production only if she is able to conduct exploration works and finds new reserves. He stated this at last year’s Oil and Power conference in South Africa.

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“If we do not conduct the exploration works and finds new reserves, we will not be able to maintain the current levels of production,” he said.

Adding he said: “We have to work on the perspective of finding new oilfields to sustain the desired production, based on the goals set by the government.”  .

To achieve this goal, the minister said Angola has developed a strategic plan to attract new players to its established oil and gas sector as well as promoting a licensing round at Angola Oil & Gas taking place in June 2019. He also said they intend to open up marginal fields that would be based on the 2018 legislation. Adding that the measures will encourage new participation and investment from Angolan, African and international independents in the country’s oil and gas sector.

The 2019 licensing round the minister said would include onshore and offshore blocks in the Congo, Namibe and Cunene basins, all of which are expected to boost exploration potential with the ultimate aim to increase production from the country’s current levels of 1.49 million barrels of oil per day.

In line with Angola’s decision to promote access to marginal fields, the government has established guidelines for marginal operators by presidential decree. According to the law, marginal fields are characterized by at least one of many factors. These include: recoverable resources of less than 300 million barrels; water depth exceeding 800 meters; and/or income to the state less than $10.5 per barrel. The law also provides different tax structures for marginal fields.

“There is an antiquated perception that Angola as an oil and gas market is only for the big boys,” said Guillaume Doane, CEO of Africa Oil & Power, organizer of Angola Oil & Gas 2019. “Through marginal fields, Angola is attracting a greater diversity of exploration and production players who can operate smaller onshore and shallow water resource plays. In the next decade Angola can achieve historic developments through marginal fields similar to what Nigeria accomplished in recent years.”

 

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