ANGOLA THE OIL INDUSTRY MINISTRY OF PETROLEUM ANGOLA

ANGOLA THE OIL INDUSTRY

MINISTRY OF PETROLEUM ANGOLA - THE OIL INDUSTRY Outline • • • Introduction Exploration Oil Production Field Development The Future

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY Introduction Angolan Continental Margin • Three major sedimentary basins Lower Congo Basin – Different exploration history Kwanza Basin Namibe Basin

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY ANGOLAN OFFSHORE CONCESSIONS • 35 Concessions Blocks – 17 Awarded (6 shallow-water; 7 deep- water and 4 ultra-deepwater) – 7 Relinquished; 11 Open – To Be Divided: Ultra-Deepwater West Area of Lower Congo Basin and the Ultra-Deep Water of Kwanza and Namibe Basins

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY EXPLORATION Exploration History (1) • 1910 – Hydrocarbon exploration start up • 1955 – First onshore commercial discovery (Kwanza basin: Benfica field) • 1966 – First offshore commercial discovery (Lower Congo basin: Limba field) • 1993 – Deepwater exploration start up • 1996 – First deepwater commercial discovery (Lower Congo basin: Girassol field) • 1999 – Ultra-deepwater exploration start up • 2002 – First ultra-deep water commercial discovery (Lower-Congo basin: Plutão field)

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY Exploration History (2) Lower Congo Basin 1993 – Deep-water drilling exploration start up 1996 – 2003 - 55 commercial discoveries (Blocks 14, 15, 17 and 18) - High exploration success rate 2001 - Ultra-deep water drilling exploration start up – 8 discoveries. Block 31 (4). Block 32 (3). Block 33 (1) – Exploration activity underway

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY Exploration History (3) Kwanza Basin 1996 - Exploration drilling start up – 1 sub-commercial discovery (Semba-1/ block 24) – Blocks 19, 20, 21, 22 and 25 abandoned – Block 24 remains exploration under

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY OIL PRODUCTION (1) Block 14 Block 0 Onshore L. Congo Block 15 Block 17 Block 2 Block 3

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY OIL PRODUCTION (2) • Country Oil Production History – 1975: ~175, 000 b/d - Current oil output: over 1, 000 b/d Associated Gas Production – ~1. 2 bcf/d • ~60% flared • Remaining is re-injected/gas lift/LPG extraction

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY MAJOR DEVEL. PROJECTS (1) Block 0 Sanha Condensate Project - Recovering of oil , condensate and LPG and reinjection of lean gas - Start Up: 2004

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY MAJOR DEVEL. PROJECTS (2) Block 14 Benguela/Belize/Lobito/Tomboco • Cluster • Phased Approach –Phase 1: Benguela/Belize – Phase 2: Lobito/Tomboco • First Oil: 2005 Tomboco Benguela Belize Lobito Central

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY MAJOR DEVEL. PROJECTS (3) Block 15 Kizomba A • Cluster (Hungo & Chocalho) • Plateau production: 250, 000 b/d • On stream since August-04 Kizomba B • Cluster (Dikanza & Kissanje) • Plateau production: 250, 000 b/d b/ • First oil: 2005

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY MAJOR DEVEL. PROJECTS (4) Block 17 • Rosa/Lirio/Cravo • Dália (stand alone dev. ) - Start Up: 2006 - Prod. Plateau: 225 000 b/d

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY DÁLIA – DEVEL. CONCEPT (Block 17) • Water Depth = 1400 m • 67 wells • Oil 23 ºAPI FPSO • Storage Capac. = 2 MMbbl • Rate =240 Mbopd Local Content: 17% (Facilities)

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY MAJOR DEVEL. PROJECTS (5) Block 15 Kizomba C • Mondo • Batuque/Saxi Block 18 Great Plutónio • Plutonio/Cobalto/Galio/Cromio/Paladio • Production plateau: 200, 000 b/d • First oil: 2006

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY GAS PRODUCTION Along With Oil Production, Around ~1. 2 BSCFD of Associated Gas Is Produced of Which, ~ 60% Is Flared. Flaring of Associated Gas Represents a Significant Economic Loss and Combustion Products Make a Major Contribution to Environment Damage. A Major Project Will Be Implemented to Reverse the Current Situation:

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY ANGOLA LNG PROJECT LNG Plant Location Plant Capacity: 5 MMTPY Start Up: 2009 BLOCK 2 CENTRAL GAS GATHERING HUB (Planned Ammonia/Urea Plant)

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY The ALNG Project will: q Facilitate fields development without flaring of the associated gas q Generate revenues from a resource that used to be considered as a by-product in petroleum operations q Allow Sonangol to enter to a new business area q Be an anchor project for future opportunities in gas utilization and industrial development q Generate new jobs opportunities for nationals

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY NEW REFINARY PROJECT • The Project - World scale project - 200 000 bpd processing capacity ( heavy oil from Kuito and Dália fields) (Remark: The utilization of this kind of crude enhances project profitability) - High quality products to meet external market specification (incl. Europe and USA)

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY The Out Come From The Peace Exploration and production activities resumed in onshore areas: . Lower Congo and Kwanza basins. Onshore Kwanza divided – 23 Blocks . Extended to interior basins of Kassanje, Etosha and Okawango

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY KWANZA ONSHORE: - 23 CONCESSIONS BLOCKS (AREA: 1 024 KM 2 EACH)

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY THE FUTURE q Continue the Exploration Activities in Both Offshore and Onshore Including the Interior Basins to Better Understand the Oil Potential and Guarantee the Replacement of Reserves Being Produced. q Secure the Huge Investment Required to Bring on Stream the Remaining Discoveries Awaiting for Development.

MINISTRY OF PETROLEUM ANGOLA – THE OIL INDUSTRY q Increase the Local Content in the Oil Sector and Secure the Employment of Nationals. q Take Advantage of Post-War Era and Apply the Revenues Generated by the Oil Sector to Develop Other Sectors. q Reach the Production Milestone of 2, 000 b/d in 2008

Thank You Obrigado O Pensador/The Deep Thinker