Norwegian energy company Statoil has been named operator of two blocks in the Kwanza Basin off Angola, the firm said Tuesday, its first assignment to lead exploration and production off the southern African nation.
The company was awarded operatorship for blocks 38 and 39 and a partnership position in blocks 22, 25, and 40 in the offshore basin.
The Norwegian company will have a financial commitment of approximately $1.4 billion relating to the awards, including signature bonuses and a minimum work commitment, it said.
“With 20 years of experience in Angola and a position as one of the largest producers in the country, becoming an operator of two pre-salt licences is an important milestone for Statoil,” Tim Dodson, Statoil’s executive vice president for exploration, said in a statement.
“Pre-salt” refers to potential oil deposits located below a thick salt layer far below the seabed. There is a similar salt layer off Brazil. Any oil would be thousands of metres beneath the seabed, which in these areas is itself 1,500 metres to 3,000 metres below the ocean surface.
“The Angolan pre-salt is a frontier play with high potential, believed to be analogous to pre-salt Brazil,” said Dodson.
The announcement followed a competitive bidding round organised by Sonangol for access to the acreage.
In the two blocks where it will lead activities, Statoil said, it was assigned a 55-percent ownership interest, while in the other three it was given 20 percent.
“This is very important,” said Carnegie analyst John Olaisen “It’s probably the biggest signing-on bonus they ever paid. The total commitment is $1.4 billion and the signature bonus is I think the majority of that.”
He added: “This is extremely promising exploration acreage.”
Statoil will operate Block 38 in conjunction with Sonangol and China Sonangol, which have 30-percent and 15-percent interests respectively.
In Block 39 Statoil’s partners are Sonangol, with a 30-percent interest, and Total with 15 percent.
“This is a milestone in that they (Statoil) have only been a partner in Angola before,” said Magnus Smistad, an analyst at Fondsfinans, adding that its leading role will allow Statoil to show off Norwegian offshore expertise and technology.
