Angola to seek foreign partners for downstream operations

Angola plans to invite foreign participation in downstream oil and gas projects for the first time, following the success of offshore production ventures. Rosario Jacincta, deputy general manager of state oil and gas firm Sonangol, told delegates at the sub-Saharan Oil & Minerals Conference how the countrys recent sustained peace, after years of civil war, makes it possible to try to attract foreign investment in onshore projects. Angola's oil production is expected to average 750,000 b/d

June 24, 1996

2 min read

Angola plans to invite foreign participation in downstream oil and gas projects for the first time, following the success of offshore production ventures.

Rosario Jacincta, deputy general manager of state oil and gas firm Sonangol, told delegates at the sub-Saharan Oil & Minerals Conference how the countrys recent sustained peace, after years of civil war, makes it possible to try to attract foreign investment in onshore projects.

Angola's oil production is expected to average 750,000 b/d this year, due in part to successful offshore development projects.

There are major opportunities for deep water exploration in Angola, Jacincta said. He reported "strong interest" in deepwater prospects off Cabinda, where Sonangol has completed mapping several blocks that will be offered for bidding.

Onshore, there are exploration and development opportunities in the Soyo and Cabinda areas.

Jacincta said BP Exploration Operating Co. Ltd., Elf Aquitaine SA, Petrofina SA, Repsol SA, and Texaco Inc. are negotiating for projects. "Sonangol is getting ready for onshore licensing and has prepared data to encourage exploration and development of new regions," he said.

Downstream

Downstream, government is placing priority on regeneration of infrastructure as part of a national reconstruction plan.

Sonangol intends to use associated gas, currently flared or reinjected, to produce liquid petroleum gas for sale in local markets.

The company also plans to expand its aging 20,000 b/d capacity refinery and is looking to build a new plant with 150,000 b/d of crude distillation capacity.

Angola's marketing sector is being readied for entry by foreign firms, while Sonangol has plans to build grass roots methanol and ammonia plants to utilize gas reserves further.

Angola produced about 38 billion cu m of gas in 1995, said Jose Mangueira, national director for petroleum in the Ministry of Petroleum. More than 50% was flared because there is no viable commercial option.