26 December 2012

Angola Produces Average 1.7 Million Barrels Per Day

Luanda — An average 1.7 million barrels of crude oil were produced in Angola from January to November 2012, a period marked by the start of production in the Phase I of the Block 15 Kizomba Satellite Project on the country's offshore.

Alike in 2011, this year recorded a floating production owed to technical and maintenance problems in some oil fields, which held the productive activity below expectations.

The fluctuations are reflected on the output of 1.76 million barrels a day reached in the first quarter, against 1.74 million daily in the second.

However, the expectations are promising, as Oil Ministry's data indicate that crude oil production in the country will rise from 1.8 million to 2.0 million barrels a day until 2014.

Meanwhile, the start of production in the said Phase I of the Block 15 Kizomba Satellite Project expects to reach a level of productive activity of about 100,000 barrels a day and recover 250 million from the Mavacola and Clochas fields.

The Phase I of the Kizomba Satellite is not the only discovery in the field in 2012. Other relevant occurred on Block 16 with the drilling of the Caporolo-1 well, on deep water offshore. This is the second oil discovery on the said block, after Chissonga-1.

With an oil production that responds to about two percent of the world's total output, the country recorded in May the arrival to the export terminal of the first Liquefied Natural Gas (LNG) tanker, where the preliminary testing of mooring and connection of the loading system was conducted.

The process is a slow one and requires doubled precautions, which justifies the fact that, eight months gone by, part of the programme of tests is still underway. When everything is reported ready, it is expected that the plant produces 5.2 million tonnes of LNG a year for domestic consumption, making the internal market self-sufficient.

The Angolan authorities are also working on the drafting of legislation that propitiate an efficient management of oil and gas, taking into account the country's sustainable development.

The legislation will include measures for waste treatment, environmental impact studies, management of operational discharges, prevention /response to spillover, implementation of environmental management systems, audit and monitoring.

This is where the construction of the Lobito Refinery in central Benguela province comes in, for which the foundation stone was laid this month. The construction of the plant considered the third pillar of the Lobito Corridor development (along with the port and Benguela Railway), estimated to cost about Akz 700 billion.

Until the completion of the project, two phases will have been accomplished, namely that of construction in two-year- and- a- half time and the second and last for the assembling of various oil refinery lines, with a duration of three years.

In November emerged the prospect of the national oil concessionary (Sonangol ) to conduct in 2013 the second award of pre-salt exploration licence, this time on onshore block. The most recent tender of pre-salt (offshore) was held in January 2011.

There are ten blocks awaiting bid in the Soyo Basin and five in the Kwanza Basin. Sonangol plan includes attracting small and medium size companies into the oil exploration business.

The revenues from the oil sector continue to be the lever of the Angolan economy and the main source of support for the State budget (State Budget), along with the process of diversification of the economic activity underway in the country.

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