The 2020-2025 Oil and Gas Exploration Strategy (EEPG), recently approved by the Government, provides for the identification of reserves of 40-57 billion barrels of oil, more than 5 times the reserves currently identified, and 17.5- 27 trillion cubic feet of gas. The forecast indicates that the average daily production level will remain above 1 million barrels until 2040. The 2018 legislation on Marginal Discoveries (formerly owned by the concessionaire, Sonangol EP, and now by the oil companies) is pointed out by sources in the sector as having the potential to stop more quickly the drop in oil production (currently falling at the annual rate of 7%-8%, due to the high maturity of the main blocks).
The incentives attributed to the exploration of marginal discoveries include the amortization of development expenses for longer periods; more favorable crude oil limits for cost recovery; lower oil yield tax; and more attractive investment premiums.
Maersk Oil, in Block 16, was one of the companies that most recently benefited from these conditions (AM 1249). In the same vein, the Oil Ministry transferred in JUL. from Sonangol EP to ENI the operator status of Block 1/14, in the Lower Congo basin (AM 1261). After Total (AM 1259), ENI is identified by sources in the sector as the oil company currently most active in Angola.
According to the EEPG, without exploring new reserves, the country's production will fall by 30% over the next 10 years, c. 400 thousand barrels/ day (to c. 800 thousand bpd). The failure to identify reserves in recent years, it is said, has made the current situation "critical". READ MORE