Total, Eni And Sonangol Bid for Angolan Oil And Gas Acreage
24 Nov 2019 by Energy Mix Report
Angola’s oil, gas and biofuels agency (ANPG) announced the names of companies that submitted proposals for 10 fields in the Namibe and Benguela basins, which concluded on Wednesday. The bid round signifies an opportunity to enter these frontier basins during its early stages of development.
The announcement follows a series of roadshows in Luanda, Houston, London and Dubai held in September, which attracted more than 500 industry players. The roadshows included presentations of the 10 blocks, which cover a total area of 55.387,88 km2. The ANPG offered nine blocks in the Namibe basin; 11, 12, 13, 27, 28, 29, 41, 42 and 43, block 10 is in the Benguela basin. All these blocks currently have no hydrocarbon production.
Angola’s National Oil Company, Sonangol, has submitted proposals to explore nine blocks; proposing a 20% operational stake in six blocks, 35% in two blocks and 40% in the remaining block. Eni Angola submitted a proposal for one block; proposing a 60% operational stake in partnership with Sonangol, while Total EP Activities Petroleum proposed a 46% operational stake in one block, also in partnership with Sonangol.
This was Angola’s first public auction since the pre-salt layer blocks auction of 2011 and the first of a series of licensing rounds to take place under the ANPG. The bidding round followed a strategy set out under Presidential Decree No. 52/19, which was released last year, in an effort to boost exploration, maximize reserve replacement and increase Angola’s oil and gas production.
The licensing round was guided by Angola Law No. 10/04 of November 12, 2004 (the Petroleum Activities Law, as amended by Law No. 5/19 of April 18, 2019), and Angola Presidential Decree No. 86/18 of April 2, 2018, which states how public tenders and bids should be carried out. ANPG holds the mineral rights for the exploration, development, and production of liquid and gas hydrocarbons in Angola.