The national oil company Sonangol has publicly announced that the Angolan jury of the bid rounds has elected Norwegian major Statoil (NYSE:STO) for operatorship and participation in several pre-salt blocks offshore Angola.
Statoil has submitted its proposal as part of the pre-salt restricted public bid round organized by Sonangol for access to pre-salt acreage in the Kwanza Basin in Angola. Statoil’s proposal includes operatorship of Blocks 38 and 39 and participation in Blocks 22, 25 and 40 with a comprehensive work program and a signature bonus for each block.
Sonangol has announced the jury’s proposal of the composition of the different consortia groups for pre-salt blocks awarded in the restricted public bid round.
“The Angolan pre-salt is a frontier play with high potential. This presents Statoil with the opportunity to access several high impact exploration prospects which are believed to be analogous to pre-salt Brazil. Securing a multiple block portfolio early on in the exploration of this new play is a big advantage. Such a strong and influential position gives Statoil exposure to significant upside potential should the play be proven, says executive vice president for Exploration,” Tim Dodson.
As the operating company, Statoil was elected by the jury of the bid rounds to participate in Block 38, which measures 6298 square kilometers; and Block 39, which measures 7800 square kilometers. On both, Statoil is the operator with a 40% share.
As a non-operating partner, Statoil was elected by the jury of the bid rounds to participate with 20 percent in Block 22, which measures 5180 square kilometers; Block 25, which measures 4825 square kilometers; and Block 40, which measures 7588 square kilometers.
Formal granting of licenses for all blocks is subject to the Angolan Ministry of Petroleum’s decision of any appeal of the jury’s decision, and the successful negotiation of contractual terms including Production Sharing Agreements (PSAs).
“With nearly 20 years of experience in Angola and as the 4th largest producer in the country, our ambition has been to become an operator. We are eager to expand our existing Angolan portfolio and to become a more active contributor in the development of the Angolan hydrocarbon sector and the economy at large,” Dodson adds.
Statoil believes that it’s technical and subsurface competence, experience in international deep water exploration programs and established track record in planning and executing large complex offshore projects will be beneficial in unlocking the exploration potential of the pre-salt play in Angola.
As a major partner in Blocks 4/05, 15, 15/06, 17, 31 and 34, Statoil already participates in ten producing fields and in four new fields under development (Pazflor, PSVM, Kizomba satellites and CLOV). Statoil’s equity production from Angola is currently around 180 000 barrels of oil per day, representing close to 10% of Statoil’s production.