Angola’s marginal fields estimated at 4 billion barrels

     Economy           
  • Luanda     Monday, 16 May De 2022    19h32  
O secretário-geral da OPEP estava prestes a deixar o cargo em Agosto deste ano
O secretário-geral da OPEP estava prestes a deixar o cargo em Agosto deste ano
Divulgação

Luanda - The volume and reserves of the declared marginal fields of Angola are estimated at four billion barrels of oil, said Monday the chairman of the Board of Directors of the National Agency of Oil, Gas and Biofuels (ANPG), Paulino Jerónimo.

Paulino Jerónimo, who did not disclose goals or deadlines, said the quantity means that there is a lot to be developed to allow the stabilization of Angola's crude output.

 

Speaking at the high-level panel of the VIII African Petroleum Congress and Exposition opened Monday, he mentioned that the challenge for this legislature is to boost and intensify the replacement of reserves with the aim to mitigate the sharp production decline.

 

"This is in fact what we are doing," said Paulino Jerónimo, adding that Angola has about 820,000 square kilometers of Sedimentary Basin lacking exploration strategy in order to evaluate its entire extension.

 

The strategy for exploration concessions has been approved, which foresees the delivery of about 50  concessions from 2019 to 2025, Mr Jeronimo said, adding that about 25 have already been awarded representing 50 percent of  job done in just three years.

 

In 2023 the ANPG says it will run its fourth bidding, something that has not happened for a long time, Paulino Jerónimo disclosed.

 

"The bidding strategy, besides looking at the offshore, in deep and shallow waters, and the onshore on the coast, is also looking at the inland basins, with about 520 square kilometers of Sedimentary Basins, in which we already recognize the existence of asphalt on the surface," he said.

 

Betting on gas with nine consortiums

Another investment factor is gas, which until a recent past belonged to the State, which did not give exploration rights, however, the State decided to give the rights to investors, which allowed the constitution of two large projects and the creation of nine gas consortiums.

 

The constitution of the consortiums was possible due to the granting of rights by the State.

 

The ANGP’s CEO added that the decline in production is worrying, which will be reversed with the strategies underway.

 

Angola's peak oil production was reached in 2008, with 1.9 million barrels of oil/day.

 

Since this period, oil production has been in a slight decline resulting from 2009 to 2015, at 1.6 million barrels of crude oil. Now, there is a more steep decline in the order of 1.2 million barrels per day.

 

Among the causes for the lack of exploration and the non-development of marginal fields were identified.

 

Over the past 20 to 30 years, several fields were discovered that were not economically viable in light of existing contracts.

 

As a result of the efforts undertaken, Paulino Jerónimo announced that the multinationals Esso and TotalEnergies, are preparing to drill exploration wells within the developing areas, which if discovered will make a big change.

 

As for the marginal fields, he said contractual tax incentives have been given to marginal plants to allow them to develop.

 

In 2021 the first marginal field production was recorded, in one well, in Cabinda Province, and another one is expected to be under development this year, as well as in 2023.

 

As for energy transition, he argued that it should firstly go through a cleaner oil production, with less carbon emissions, which harm the environment.



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