--> Abstract: Evolving Upstream Opportunities in Angola, by J. David; #90933 (1998).

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Abstract: Evolving Upstream Opportunities in Angola

David, Joaquim - Sonangol

Since the first commercial oil discovery in 1955, the petroleum industry in Angola has grown significantly and currently contributes 70% to the country?s Gross Domestic Product. During the 1980s, two billion barrels of recoverable reserves were found. Since 1995, another estimated 5 billion barrels of recoverable oil have been discovered. These large reserves represent only a small portion of Angola?s total hydrocarbon potential. Due to the vast amounts of unexplored acreage, political stability, a favorable business climate, and recent improvements in support infrastructure and deepwater technology, Angola offers ideal conditions for future upstream investments.

Several relatively unexplored basins could hold significant additional reserves. Angola?s continental margin basin is divided into 5 sub-basins of the South Atlantic salt basin. These basins formed during the Cretaceous rifting of South America and West Africa. Favorable geological conditions, including multiple oil-prone source intervals, stacked reservoirs, varied trap types, efficient migration pathways and excellent evaporite, marine, and lacustrine shale seals, have resulted in a number of highly prospective hydrocarbon plays that are Early Cretaceous to Tertiary in age. The north Angola play area, currently in the early stages of exploration, has demonstrated an increasing reward with time, as shown by the steeper growth in the cumulative discovered reserves versus the exploration effort ( 1). In the highly prospective central Angola play area, several new concessions have been recently awarded. Furthermore, there are three interior basins that are essentially unexplored.

Operating bases to support the industry have been either established or recently upgraded in Cabinda, Soyo, Luanda, and Lobito. These bases provide facilities for operators and service companies to support offshore operations, particularly in the deep water areas where several large-scale exploration and development projects are underway. Recent improvements in seismic quality and deep-water technology will enable these projects to be brought on stream in a relatively short time.

Political and economic stability, along with the peace process, have created a business climate favorable for long-term investments - not only in upstream petroleum ventures but in the country as a whole. Production Sharing Agreements will allow fair and reasonable fiscal provisions so that petroleum companies can make reasonable returns on their investment, and with terms that remain stable throughout the duration of the agreement. New petroleum and environmental laws are being developed to guide the anticipated growth in the Angolan petroleum industry.

AAPG Search and Discovery Article #90933©1998 ABGP/AAPG International Conference and Exhibition, Rio de Janeiro, Brazil