Angola in Talks With Oil Majors

Angola has targeted an increase of about 250,000 barrels per day in oil output by 2020 and is already in discussions with oil majors ExxonMobil and Equinor to achieve this, said Sonangol’s Chairman of the Board Carlos Saturnino.

New energy legislation and more favorable investment terms have already spurred interest from international operators, including Chevron Corp. and Total SA, he said in an interview in Vienna, World Oil reported.

Angola is working to roll back a sizable drop in its oil production this year due to technical problems at the country’s mature fields and an inability to lure international operators.

Saturnino said the country is currently producing 1.55 million bpd, down from an average of 1.65 million bpd over the past year.

The decline in the West African nation’s industry was a key part of the debate last week between the Organization of Petroleum Exporting Countries and its allies.

Angola is one of those countries that cut supplies deeper than required under a 2016 accord, but also has limited ability to participate in the immediate output increase the group agreed on Friday. Saturnino said Angola’s average crude production will rise next year to 1.67 million barrels a day—around 123,000 bpd above current levels.

“ExxonMobil is now in discussions to enter into a memorandum of understanding for a new investment in the existing Block 15,” he said.

“Exxon has requested to study new acreage and has put forward a new proposal to sign an MoU for new blocks.”

Eldar Saetre, president of the newly-named Equinor, will travel to Angola’s capital, Luanda, on July 26 to sign a memorandum to operate a block, Saturnino said without naming the field.

Saetre added that Angola plans to have direct negotiations with international operators and may consider holding a new oil and gas bidding round before 2019.

“Sonangol is currently in the midst of a restructuring and presented a plan to Angola’s government two weeks ago to privatize some of its subsidiaries,” he said.

Angola’s output fell in April to 1.5 million bpd, the lowest since January 2014, data compiled by Bloomberg show. The nation’s crude loadings for August will fall to the lowest in a decade, at 1.33 million bpd, according to data released by Sonangol.