Sonangol to sell major assets

Image: mozambiqueminingpost.com

Angola’s national oil company Sonangol is reportedly close to privatizing its share in block 32 offshore Angola.

According to the Mozambique Resources Post, Sonangol is close to selling its 30 percent stake in block 32 in efforts order to reduce debts and invest elsewhere in the oil sector. As the largest offshore development in Angola, Block 32 will require an estimated investment of $16 billion in the coming years.

The Block consists of the Kaombo Norte FPSO which began pumping oil in late July 2018 while the Kaombo Sul FPSO is set to begin production mid 2019.

Each of the FPSO vessels will produce 115, 000 barrels per day. The fields are said to have around 650 million barrels of recoverable oil.

The main operators on the block are Total and Sonangol Sinopec International 32 Limited.

Total holds a 30 percent share in the block, Sonangol Sinopec International 32 Limited holds 20 percent while Esso Exploration and Production Angola Limited holds 15 percent and Galp Energia the remaining five percent.