Sonangol, ExxonMobil Ink Exploration Deal

December 14, 2018

© Mego-studio / Adobe Stock
© Mego-studio / Adobe Stock

Angola's state oil company Sonangol and ExxonMobil on Friday signed a memorandum of understanding for oil exploration in the country's Namibe basin, the two firms said.

Angola, Africa's second-largest crude producer, is facing a steep output decline unless it can revive exploration in what was once one of the world's most exciting offshore prospects.

Sonangol is negotiating contracts for new blocks with oil majors and Angola plans to hold an auction next year, the first tender for exploration rights since 2011.

Sonangol's chairman Carlos Saturnino said the memorandum paves the way for the parties to start contract negotiations for new oil concessions, part of the state firm's strategy to strengthen the search for new oil activities and discovery of new reserves.

ExxonMobil's director general in Angola Andre Kostelnik, said the new field of exploration can be viewed as the resurgence of oil activity in the country.

The signs of fresh exploration in Angola comes after a period of near-paralysis due to a lack of drilling success, a slump in oil prices and a deteriorating relationship between Sonangol and the oil majors.

Oil accounts for 95 percent of Angola's exports and around 70 percent of government revenues.


(Writing by Olivia Kumwenda-Mtambo Editing by James Macharia)

Current News

Fugro to Mobilize Edda Sun for IRM Work

Fugro to Mobilize Edda Sun for IRM Work

Saipem Wins EPIC Work from Saudi Aramco

Saipem Wins EPIC Work from Saudi Aramco

Schlumberger to Manage Equinor Project in Brazil

Schlumberger to Manage Equinor Project in Brazil

BP Goes Global with Seismic Tech

BP Goes Global with Seismic Tech

Shell to Pick Either Onesubsea or TFMC for Ormen Lange Phase 3

Shell to Pick Either Onesubsea or TFMC for Ormen Lange Phase 3

Safer Than Other Industries

Safer Than Other Industries

Schlumberger Sees International Growth in 2019

Schlumberger Sees International Growth in 2019

Subscribe for OE Digital E‑News

OE Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week