FG foot drags bid round as investors shift attention to Angolan 2019 licensing regime
Considering the body language of the Federal Government suggesting not being ready to open bid rounds for Nigerian crude oil blocks since 2016, ongoing Angolan crude licensing rounds have attracted both local and international investors.
Business Hilights authoritatively gathered that Angola’s licensing round will include a new focus on the development of marginal fields.
Already, the Angola Oil & Gas will be 2019’s main promotional event for the licensing round and marginal fields. Licensing round and marginal field legislation indicate new strategic direction and opening of Angola’s oil and gas business.
Currently, Angola has developed a strategic plan to attract new players to its established oil and gas sector, promoting a licensing round at Angola Oil & Gas in June 2019 and opening up marginal fields based on new 2018 legislation. The measures will encourage new participation and investment from Angolan, African and international independents in the country’s oil and gas sector.
Investigations revealed that the Angolan Minister of Mineral Resources and Petroleum, Mr. Diamantino Azevedo, is keen to bring new life to Angola’s oil sector, which has seen a decline in discovered oil reserves and the maturing of producing fields.
The 2019 licensing round, which will include onshore and offshore blocks in the Congo, Namibe and Cunene basins, will boost exploration potential with the ultimate aim to increase production from the country’s current levels of 1.49 million barrels of oil per day.
He noted in an interview that “If we do not conduct the exploration works and finds new reserves, we will not be able to maintain the current levels of production,” said Azevedo. “We have to work on the perspective of finding new oilfields to sustain the desired production, based on the goals set by the government.”
Besides, in line with Angola’s decision to promote access to marginal fields, the government has established guidelines for marginal operators by presidential decree. According to the law, marginal fields are characterized by at least one of many factors. These include: recoverable resources of less than 300 million barrels; water depth exceeding 800 meters; and/or income to the state less than $10.5 per barrel. The law also provides different tax structures for marginal fields.
Monday, Guillaume Doane, CEO of Africa Oil & Power, organizer of Angola Oil & Gas 2019 said “There is an antiquated perception that Angola as an oil and gas market is only for the big boys.”
“Through marginal fields, Angola is attracting a greater diversity of exploration and production players that can operate smaller onshore and shallow water resource plays. In the next decade Angola can achieve historic developments through marginal fields similar to what Nigeria accomplished in recent years.”
Africa Oil & Gas 2019, planned for June 4-6 in Luanda, is officially endorsed by the Ministry of Mineral Resources and Petroleum of the Republic of Angola, and will bring together the top-level executives, government officials and experts for an elite, three-day conference on Angola’s oil and gas market.
