Petrobras participates in Angola oil exploration consortium
May 29, 2006
Angolan national oil company Sonangol has announced Petrobras' participation in the consortium formed by Sonangol Sinopec International (SSI) to explore Block 18 in Angola.
Offshore staff
(Angola)-Angolan national oil company Sonangol has announced Petrobras' participation in the consortium formed by Sonangol Sinopec International (SSI) to explore Block 18 in Angola.
Block 18 is located in deep waters and is known to contain oil reserves on the order of 750 MMbbl, which belong to a different consortium. A remaining area of the block is still unexplored, and has excellent new discovery potential, according to Sonangol.
The consortium includes Petrobras (30% as operator), SSI (40%), Sonangol P&P (20%), Falcon Oil (5%), and the Gema Group (5%). It now has the right to explore the remaining Block 18 area, and will disburse $1.1 billion in a subscription bonus for the concession rights. This will be paid proportionately to each partner's participation.
By participating in this consortium, Petrobras will hold positions in six blocks, one of which a production block (Block 2), while the remaining ones are exploratory. The company will perform as an operator in three of these blocks: 6, 26, and in the remaining area of Block 18.
In line with its Strategic Plan, Petrobras is seeking to increase its exploratory project portfolio in Angola, a country that has some of the fiercest competition among E&P companies in the world.
