CAPITAL: LUANDA
MONETARY UNIT: KWANZA
REFINING CAPACITY: 39,000 B/CD
OIL PRODUCTION: 743,500 B/D
OIL RESERVES: 5.4 BILLION BBL
GAS RESERVES: 1.62 TCF

Angola in 2000 rode a wave of oil discoveries unmatched in most of the rest of the world in frequency and size.

Capital investment in Angolan exploration and development by all companies during 2000-2005 was to total $15.6 billion, surpassing the $11.2 billion to be invested in Nigeria, formerly West Africa's largest oil and gas investment draw, one survey showed. Angola itself placed the figure even higher than that.

The offshore oil sector provided 40% of Angola's gross domestic product and as much as 90% of government revenues in 2000. Inflation was extremely high as ubiquitous civil war consumed most revenues.

The government agreed in mid-2000 to allow an outside audit of how it spent its oil money. Another agreement was in place under which the US Department of Energy would help the Angolan energy ministry streamline the energy sector and facilitate infrastructure development.

The US DOE said Angola's Cabinda province, which produced 70% of Angola's oil, wanted to control 30% of the province's production. In 2000 it received only 10% of the taxes from the Chevron group's production off Cabinda.

Upstream developments

Angola's oil production in 2000 had more than quadrupled since 1980 and was headed upwards as the remarkable string of deepwater discoveries were brought on stream.

One analyst noted that Angola's oil production rose 75% during the 1990s and predicted that it would grow a further 50% to 1.26 million b/d by 2010. Another analyst opined that West Africa could become the world's most important offshore oil province.

As of late 2000, TotalFinaElf SA held close to a third of the estimated 15.8 billion bbl of reserves slated to be brought on stream off all West African countries by 2005, UK analysts said. Most of those reserves are off Angola and Nigeria. Chevron and Texaco together held combined reserves calculated at 3.7 billion bbl, ExxonMobil 2.5 billion bbl, and Shell 1.6 billion bbl.

A Chevron group started oil production in late 1999 on Block 14 off Cabinda from Kuito, Angola's first deepwater field. It was to climb to 100,000 b/d from 12 wells in first quarter 2000. Water injection was to start in mid-2000. Gas was used for fuel or reinjected.

Chevron was pressing detailed development studies of Benguela and Belize oil finds on Block 14. Other oil discoveries on the block were Landana and Lobito.

An Esso group found Batuque deepwater oil field on Block 15. Eight previous finds on the block included Saxi and Mondo in 2000, Chocalho and Xikomba in 1999, and Hungo, Kissanje, Marimba, and Dikanza in 1998.

The first development set to be started up—the complex comprising Hungo, Chocalho, Kissanje, and Dikanza fields and known as Kizoma—stalled after Sonangol ordered the company to cancel a multibillion-dollar work tender in a disagreement on tax terms. First oil had been set for 2003.

Block 16 was relinquished in 1999.

A TotalFinaElf group discovered Jasmin field in 4,239 ft of water on Block 17. Other Block 17 finds include Girassol, 1996; Dalia, 1997; Rosa and Lirio, 1998; and Tulipa, Orquidea, Cravo, and Camelia, 1999.

With these finds, Elf pegged reserves at about 3.5 billion bbl for the block. Girassol, in 1,350 m of water, was to be the block's first find to come on stream, barely 5 years after discovery.

A BP and Shell group found Paladio oil field 175 km offshore in 1,233 m of water. It was the fourth find in four wells drilled on Block 18. The others were Galio, Platina, and Plutonio. Development could start in the mid-2000s.

Processing, transport

With the ramp-up in crude production, another refinery could join the 39,000 b/d Luanda plant.

The country was developing plans for a $2 billion, 200,000 b/d facility at the central coastal town of Lobito. About 80% of the products would be exported regionally.

Sonangol let a contract to a 40-60 Sonangol-Technip joint venture to serve as project manager for construction.

The government, anticipating financial resources from development of the country's vast deepwater oil discoveries, had voiced the desire to end gas flaring offshore and to obtain value from associated gas to be produced with deepwater oil.

Offshore operators produced almost 1 bcfd of gas during 1999. They flared about 80% of that, using most of the rest on platforms for gas lift or reinjecting it.

Produced volumes were expected to double within a few years. An LNG project was a leading option for capturing the value of the gas.