Proven oil reserves in Angola have tripled in the last seven years. According to the Oil and Gas Journal (OGJ), Angola had proven oil reserves of 5.4 billion barrels as of January 2006. The majority of the reserves are located in Angolas offshore blocks. The most prolific offshore blocks have been Blocks 15 and Zero. Proven reserves are also located onshore near the city of Soyo. The majority of Angolan oil is medium to light crude (30 degrees to 40 degrees API) with a low sulphur content (0.12 percent to 0.14 percent).
Angola is sub-Saharan Africas second largest oil producer behind Nigeria. Angolas crude oil production has more than quadrupled over the past two decades. In 1986, crude oil production averaged 280,000 barrels per day (bbl/d), while production in 2005 averaged 1.25 million bbl/d. Oil production is predicted to reach two million bbl/d by 2008, when new deep-water production sites are expected to come online. Angolas oil consumption is relatively small. In 2005, Angolan oil consumption averaged 60,000 bbl/d. However, oil consumption is expected to increase as Angolas infrastructure is refurbished and expanded.
Angolas largest export partners in 2004 were the United States and China, which comprised 40 percent and 35 percent of total exports, respectively. In January 2004, the United States made Angola eligible for tariff preference under the African Growth and Opportunity Act (AGOA). Angola also exports crude oil to Europe and Latin America.
Angolas national oil company, Sociedade Nacional de Combustiveis de Angola (Sonangol), was established in 1976 and made the sole concessionaire for exploration and production in 1978. Sonangol works with foreign companies through both joint ventures (JVs) and production sharing agreements (PSAs), funding its share of production through oil-backed borrowing. The top foreign oil companies operating in Angola are US-based ChevronTexaco and ExxonMobil, Frances Total, UKs BP, UK /Dutch Shell, and Italys Agip/Eni Oil Company.