Danish company Maersk Oil has announced a discovery of further oil reserves in Angola, in its continuous exploration of oil-rich Block 16.
The company entered Angola in 2006 acquiring a 50 percent stake in the Block 16 oil field, and recently increased its ownership to a 65 per cent stake in 2012 – in time for the new find. Maersk, a unit of Danish shipping and oil group A.P. Moller-Maersk, disclosed that it hit upon the new well through its exploration drilling project known as Caporolo-1. The find is in the western section of Block 16, 13 kilometres away from the Maersk’s existing well at Chissonga; situated 300 kilometres northeast of Luanda.
In an effort to uncover the extent of the find, Maersk announced results of production tests immediately conducted, stating a maximum production of 3,000 barrels of oil per day was achieved on a 36/34” choke size.
The well was drilled to a depth of 5,508 metres, with drilling taking place submerged 1,235 metres under-water.
Speaking of the positive results of the exploration project, Maersk Oil Managing Director for Angola, Anders Damgaard, stated: “We are encouraged by yet another success on Block 16. This is a result of our continued commitment to Angola and a further step towards our goal of building up a significant business in the country”.
Block 16 is owned 65 percent by Maersk who acts as the operator of the site, and has two co-owners; Odebrecht Oil and Gas Angola Ltd which owns a 15 percent stake, while Angolan state-owned Sonangol – established in in 1976 to manage all fuel production in Angola – retains a 20 percent shareholding.
Angola’s economy is experiencing a real boom lately largely fuelled by its lucrative oil industry. Angola is estimated to be home to 13.5 billion barrels of oil reserves, according to the BP Statistical Energy Survey for 2012; average production in 2011 of 1746.4 thousand barrels per day accounting for 2.13 percent of the world’s crude oil production. Not surprisingly then, the oil industry provides for 80 percent of government revenues and 40 percent of Angola’s GDP.
Maersk naturally added to its announcement that given the latest finds, it would be continuing with its exploration of the Block 16 area.
