• 1 hour Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 3 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 4 hours Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 hours VW Fails To Secure Critical Commodity For EVs
  • 6 hours Enbridge Pipeline Expansion Finally Approved
  • 7 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 8 hours OPEC Oil Deal Compliance Falls To 86%
  • 23 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 1 day Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 1 day Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 1 day EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 1 day Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 1 day Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 7 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
Alt Text

5 Players To Watch In The FinTech Revolution

Artificial Intelligence and Blockchain tech…

Alt Text

China Takes Aim At The Petrodollar

In a potentially disrupting move…

Alt Text

India’s Urban Explosion Boosts Oil Demand

As India sees incredible growth…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Why Angola may be the next OPEC Darling

French energy company Total said it was sinking $16 billion into oil projects off the coast of Angola. The French major is following the bread crumbs offshore Angola and now the country aims to re-establish itself as a major oil player by courting investors to onshore fields.

Total said it made a final investment decision to develop the deepwater Kaombo project off the coast of Angola. High costs had delayed the decision, though Total now says it could produce as much as 230,000 barrels of oil per day once operations begin in 2017.

"Angola remains a priority country for Total" Yves-Louis Darricarrere, president of upstream operations for the company, said in a statement.

Related Article: Oil Piracy Moves to Angolan Coast with $8M Heist

The French company last week celebrated 60 years of operations in Angola, which was plagued by civil war from 1975 to 2002. Since war ended, Total said it's been the lead oil company in Angola with approximately 600,000 bpd in production.

Angola's first commercial oil discovery coincided with Total's entry into the country. Angola became a member of the Organization of Petroleum Exporting Countries in 2007 and produced an average 1.7 million bpd of crude oil last year.

Most of the country's oil production comes from deepwater deposits, where production has grown exponentially since the end of civil war. In early April, Genel Energy, led by former BP boss Tony Hayward, said it grabbed a stake in oil interests off the coast of Angola, where reserves are expected to be on par with pre-salt discoveries offshore Brazil.

Genel said the Angolan prospects are "low risk" and in the "multi-billion barrel" range. Hayward said the acquisition was a unique opportunity to wade into a region that he said would "add significant shareholder value through the drill bit in Africa."

Oil companies are already feeling bullish about the emerging prospects across the Gulf of Guinea, where the Jubilee field is already producing an estimated 104,000 bpd.  

Related Article: French ‘Warned’ As Total Eyes Iranian Oil Deals

State-owned Sonangol aims to raise the level of crude oil production to 2 million bpd by next year with the help of deepwater prospects like Total's Kaombo. OPEC, in its market report for April, said crude oil production was down more than 9 percent from February to 1.5 million bpd, however. Like Brazil, complexities involved in offshore production have led to prolonged maintenance and offshore reservoirs have experienced a steep rate of decline.

Now, however, Sonangol said it was ready to launch a tender for 10 onshore blocks May 30. The company said the blocks up for bidding may hold an average 700,000 barrels of oil each, which would offset any production woes offshore. Oil production from Angola accounts for about 45 percent of its gross domestic product and around 90 percent of its exports. Already, it's one of the lead suppliers to the Chinese market.  Though the cost of operating in deep waters is escalating, Angola's energy sector could have the right mix for the patient investor.

By Daniel J. Graeber of Oilprice.com




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News