Angola Oil & Gas Activity

MINISTRY OF PETROLEUMMINISTRY OF PETROLEUMANGOLA ANGOLA -- PETROLEUM ACTIVITY PETROLEUM ACTIVITY

Angola Angola –– Petroleum ActivityPetroleum Activity LuandaLuandaJunho 2010Junho 2010

•• IntroductionIntroduction

•• Licensing & ExplorationLicensing & Exploration

•• Development & ProductionDevelopment & Production

•• Oil & Gas Major ProjectsOil & Gas Major Projects

MINISTRY OF PETROLEUMMINISTRY OF PETROLEUMANGOLA ANGOLA -- PETROLEUM ACTIVITYPETROLEUM ACTIVITY

OutlineOutline

MINISTERIO DOS PETROLEOSMINISTERIO DOS PETROLEOSANGOLA ANGOLA –– PETROLEUM ACTIVITYPETROLEUM ACTIVITY

Republic of AngolaRepublic of AngolaLocationLocation: on the west coast of : on the west coast of

Africa, south of equator. Shares Africa, south of equator. Shares

borders with Democratic Republic borders with Democratic Republic

of Congo (DRC) on the northeast, of Congo (DRC) on the northeast,

with Zambia to the east, and with with Zambia to the east, and with

NamNamííbia to the south. The Congo bia to the south. The Congo

river estuary and portion of DRC river estuary and portion of DRC

separates the Cabinda province separates the Cabinda province

from de rest of Angola along 201 from de rest of Angola along 201

km (109 mi) border.km (109 mi) border.

IntroductionIntroduction


Angolan continental marginAngolan continental margin

•• Three major sedimentary basinsThree major sedimentary basins

–– Different exploration history and maturity Different exploration history and maturity

stagestage

–– West Africa Global Salt BasinWest Africa Global Salt Basin

••Major petroleum provinceMajor petroleum province

•• Petroleum systemPetroleum system

–– Proven: Lower Congo and Kwanza basinsProven: Lower Congo and Kwanza basins

–– Identified: Namibe basinIdentified: Namibe basin

Lower Congo BasinLower Congo Basin

Kwanza BasinKwanza Basin

Namibe BasinNamibe Basin

IntroductionIntroduction


Angola Concession MapAngola Concession Map••Angolan offshore divided into 50 concessions blocksAngolan offshore divided into 50 concessions blocks

–– 24 licensed24 licensed

•• 8 deepwater8 deepwater

•• 4 ultra4 ultra--deepwaterdeepwater

•• 12 shallow water12 shallow water

–– 27 open27 open

•• Still to be dividedStill to be divided

–– UltraUltra--deepwater west area of Lower Congo basindeepwater west area of Lower Congo basin

Licensing & ExplorationLicensing & Exploration

Exploration historyExploration history•• 1910 1910 –– Hydrocarbon exploration start upHydrocarbon exploration start up

•• 1915 1915 –– First exploration wellFirst exploration well–– Dande Dande --11

•• 1955 1955 –– First onshore commercial discoveryFirst onshore commercial discovery–– Kwanza basin: Benfica field Kwanza basin: Benfica field

•• 1966 1966 –– First offshore commercial discoveryFirst offshore commercial discovery–– Lower Congo basin: Limba fieldLower Congo basin: Limba field

•• 1993 1993 –– Deepwater exploration start upDeepwater exploration start up

•• 1996 1996 –– First deepwater commercial discoveryFirst deepwater commercial discovery–– Lower Congo basin: Girassol fieldLower Congo basin: Girassol field

•• 1999 1999 –– UltraUltra--deepwater exploration start updeepwater exploration start up

•• 2002 2002 –– First ultraFirst ultra--deep water commercial discoverydeep water commercial discovery–– Lower Congo basin: Plutão fieldLower Congo basin: Plutão field


Angolan Oil SectorAngolan Oil Sector•• StructureStructure

–– Ministry of Petroleum (Minpet) : Regulatory bodyMinistry of Petroleum (Minpet) : Regulatory body

–– Sonangol : ConcessionaireSonangol : Concessionaire

–– Oil & gas companies : InvestorsOil & gas companies : Investors

–– Services companies : Goods & services providerServices companies : Goods & services provider

•• Legal FrameworkLegal Framework

–– Petroleum law (law 10/04)Petroleum law (law 10/04)

•• Contractual ArrangementsContractual Arrangements

–– Production sharing Agreement (PSA)Production sharing Agreement (PSA)

-- Joint Venture (JV)Joint Venture (JV)

-- Risk ContractRisk Contract

MINISTRY OF PETROLEUMMINISTRY OF PETROLEUMANGOLA ANGOLA –– PETROLEUM ACTIVITYPETROLEUM ACTIVITY


Deepwater Lower Congo basin Deepwater Lower Congo basin

•• 1994 1994 –– drilling start updrilling start up

UltraUltra--deepwater Lower Congo basindeepwater Lower Congo basin

•• 2001 2001 -- UltraUltra--deep water drilling deep water drilling exploration start upexploration start up

•• 90 commercial discoveries90 commercial discoveries•• Blocks 14, 15, 16, 17, 18,31,32 and Blocks 14, 15, 16, 17, 18,31,32 and

3333

–– Exploration success rate: 56%Exploration success rate: 56%

Offshore ExplorationOffshore Exploration


Deepwater Kwanza basinDeepwater Kwanza basin

•• 1996 1996 –– drilling start updrilling start up

–– 1 sub1 sub--commercial discoverycommercial discovery

•• SembaSemba--1 well / block 241 well / block 24

–– Blocks 19, 20, 21, 22, 24 and Blocks 19, 20, 21, 22, 24 and 25 open25 open

–– Blocks 23 & 26 under Blocks 23 & 26 under exploration phaseexploration phase

Offshore Exploration (Cont.)Offshore Exploration (Cont.)


Namibe BasinNamibe Basin

•• Remains untested by drillingRemains untested by drilling

–– Good exploration opportunityGood exploration opportunity

Offshore Exploration (Cont.)Offshore Exploration (Cont.)

Onshore ExplorationOnshore Exploration


Onshore Lower Congo BasinOnshore Lower Congo Basin

•• Block Cabinda South Block Cabinda South

-- 1 oil discovery (Massambala)1 oil discovery (Massambala)

Cabinda SouthCabinda South


Onshore Exploration (Cont.)Onshore Exploration (Cont.)

Kwanza basinKwanza basin

•• Surface areaSurface area: : 25,000 km225,000 km2

•• 23 block concessions23 block concessions––1,024 km21,024 km2

•• License roundLicense round–– Local private & small/mid foreigner Local private & small/mid foreigner companies ( in partnership with local companies ( in partnership with local companies)companies)–– Offer blocks : KON 11 & KON12 (Bid Offer blocks : KON 11 & KON12 (Bid suspended)suspended)


Interior basinsInterior basins

•• PaleozoicPaleozoic

•• Kassanje, Okawango and Etosha Kassanje, Okawango and Etosha

(Owango)(Owango)

•• Reconaissance phaseReconaissance phase

–– A total of A total of 100,881 km100,881 km airborn gravity and airborn gravity and

magnetic surveys magnetic surveys acquiredacquired

–– Interpretation and integration completedInterpretation and integration completed

Onshore Exploration ( Cont.)Onshore Exploration ( Cont.)

Oil & Gas ProductionOil & Gas Production•• Current oil outputCurrent oil output

–– +/+/-- 1,9 MMb/d (8 blocks)1,9 MMb/d (8 blocks)

•• Associated gas productionAssociated gas production–– 2.0 + Bcf/d2.0 + Bcf/d


Block 0Block 0

Block 3Block 3

Block 14Block 14

Block 15Block 15633,427 BOPD633,427 BOPD

Block 17Block 17

Block 2Block 2

Onshore CongoOnshore Congo

Block 18Block 18


Block 15Block 15•• Kizomba SateliteKizomba Satelite

First Oil: 2012First Oil: 2012


Block 17Block 17•• PAZFLORPAZFLOR

–– Cluster Cluster ––Production Plateau: 200,000 BopdProduction Plateau: 200,000 Bopd–– First Oil: 2011First Oil: 2011

Block 31Block 31•• Marte/VMarte/Véénus/Saturno/Plutão (PSVM)nus/Saturno/Plutão (PSVM)

–– ClusterCluster–– Producion plateau:150,000 bopdProducion plateau:150,000 bopd–– First oil: 2011First oil: 2011


DevelopmentDevelopment & Production& Production

ANGOLA OIL PRODUCTION

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

1977 1982 1987 1992 1997 2002 2007 2012

BB

L/D

AY

Forecast

PAZFLOR/PSVM production start upPAZFLOR/PSVM production start up


Production History and ForecastProduction History and Forecast


Angola LNGAngola LNG•• Facilitate oil field developmentFacilitate oil field development•• Reduce gas flaringReduce gas flaring•• Monetize gas resourceMonetize gas resource

•• Plant capacity: 5.2 million tpyPlant capacity: 5.2 million tpy•• Plant location: SoyoPlant location: Soyo•• Estimated cost: $9.2 billionEstimated cost: $9.2 billion•• Start up: first quarter 2012Start up: first quarter 2012

Major ProjectsMajor Projects

MINISTRY OF PETROLEUMMINISTRY OF PETROLEUMANGOLAANGOLA-- PETROLEUM ACTIVITYPETROLEUM ACTIVITY

SonarefSonaref

•• New RefineryNew Refinery

––Add value to Angolan acid and heavy crudeAdd value to Angolan acid and heavy crude

–– Total production: 7,608,000 MTPYTotal production: 7,608,000 MTPY

–– Estimated cost: usd 8.0+ billionEstimated cost: usd 8.0+ billion

–– Start up: 2014 (110 Start up: 2014 (110 –– 115 Kb/d)115 Kb/d)2015 (200 Kb/d)2015 (200 Kb/d)


Thank you so much!Thank you so much!

Documents

Angola Oil & Gas Activity