Oil production in Angola is concentrated in numerous onshore and offshore blocks. The offshore blocks are divided into three bands; (band A) shallow water blocks 0-13; (band B) deepwater blocks 14-30, and (band C) ultra-deepwater blocks 31-40. Block Zero, with areas A and B, is located offshore of the Cabinda province and accounts for approximately 370,000 bbl/d of Angolas oil production, or one-third of Angolas total crude oil production. Cabinda Gulf Oil Company (CABGOC), a ChevronTexaco subsidiary and the operator of the Block Zero fields since 1955, has a 39.2 percent share in the JV. In May 2004, Sonangol and the Angolan government extended CABGOCs contract, which was set to expire in 2010, to 2030. Other partners on Block Zero include Sonangol, Total and Agip/ENI. Block Zeros largest producing oil fields are Takula (Area A), Numbi (Area A), and Kokongo (Area B). In 2005, production began in ChevronTexacos Sanha field gas complex and Bomboco oil field, both of which are located in Block Zero. Production from the fields, which includes oil condensate and liquefied petroleum gas (LPG), is expected to peak at a combined total of 100,000 bbl/d in 2007. The Sanha gas-processing facility is the first to be built in Angola. The facility is predicted to reduce the flaring of gas in the region by 50 percent. In addition to Block Zero, CABGOC is the operator of deepwater Block 14. In January 2000, CABGOC announced full production (80,000 bbl/d) at its Kuito field. Production leveled to 61,000 bbl/d by 2001. CABGOC is currently developing six additional fields in Block 14, with four of the fields expected to come online in 2006. The fields are projected to reach a combined peak oil production of 300,000 bbl/d as early as 2008. In October 2004, ChevronTexaco announced that it would invest $7 billion to develop oil fields in Block 14 and to build a liquefied natural gas (LNG) plant off Angolas northern coast. The investment period, which began in the latter half of 2004, will continue through 2008. CABGOCs (31 percent interest) partners on Block 14 are Agip (20 percent), Sonangol (20 percent), Total (20 percent) and Portugals Petrogal (9 percent). ExxonMobil is operator of Block 15, the largest producing deepwater block in Angola. Several fields have been discovered on block 15. The Xikomba field, with estimated recoverable reserves of 100 million barrels, began production in December 2003. Production from Xikomba is currently 80,000 bbl/d. In August 2004, the $3.4 billion Kizomba-A project came online. Kizomba-A, which includes the Chocalho and Hungo fields, utilizes a floating, production, storage and offloading system (FPSO). Kizomba-A is expected to have a peak production of 250,000 bbl/d. First oil from the Kizomba-B project came online in July 2005. Kizomba-B, which includes the Dikanza and Kissanje fields, contains an estimated one billion barrels of oil reserves. Production from Kizomba-B is expected to peak at 250,000 bbl/d. Operations on Kizomba-B are also conducted by an FPSO. The Kizomba-C project, which is currently under development, will encompass production form the Batuque, Mondo and Saxi fields. Production for Kizomba-C could begin as early as 2007. At peak production, Block 15 is expected to produce 750,000 bbl/d, and total recoverable hydrocarbon reserves are estimated at 4.5 billion barrels. Exxon Mobils (40 percent interest) partners on Block 15 are: BP (27 percent), Agip (20 percent) and Norways Statoil (13 percent). In December 2001, the Girassol oil field became Block 17s first production site. This was followed in December 2003 by Totals Jasmin field. Also in 2003, Total announced approval for development of Block 17s offshore Dalia field. Development of Dalia will include a FPSO with a 240,000 bbl/d processing capacity and a 2-million-barrel storage capacity. Dalias reserves are estimated at 1 billion barrels, and the project is due onstream in late 2006 at a cost of $3.4 billion. Total operates on Block 17 with a 40 percent share, while Sonangol is its franchise holder. Other shareholders include ExxonMobil (20 percent), BP Exploration Limited (16.67 percent), Statoil Angola Block 17 AS (13.33 percent) and Norways Norsk Hydro (10 percent).
Success in offshore discoveries in Angola has led to increased interest in Angolas exploration blocks. On December 13, 2005 a new licensing round on seven blocks was opened. The blocks open to bid include: 1, 5 and 6 in the shallow-water (band A) zone and 15, 17, 18 and 26 in the deepwater zone (band B). To date, the most prolific oil producing blocks have been those in the deepwater zone. In September 2002, Canadian Natural Resources (CNR) signed a four-year PSA with Sonangol to explore for oil in the deep waters of Block 16, 72 miles off the Angolan coast. In December 2003, CNR announced that its Zenza-1 well encountered shows of hydrocarbons, but they were not of sufficient amounts to be commercial. In early 2005, CNR sold its stake in Block 16 to Denmarks Maersk Oil, which is joined with partners Sonangol (20 percent), Devon Energy (15 percent) and Brazils Odebrecht (15 percent). To date, no significant oil reserves have been located in Block 16. In addition to the Girassol and Jasmin finds, several other significant discoveries have been made on deepwater Block 17. In the eastern section of the block, Totals Acacia find tested at a combined 13,712 bbl/d of oil from two separate zones, and Hortensia tested at 5,092 bbl/d of oil. In August 2004, Sonangol approved Totals request to award contracts to develop the Rosa Field on Block 17. Development will include the construction of 25 subsea wells tied back to the Girassol FPSO. Production at Rosa is expected to begin in early 2007 at an initial rate of 70,000 bbl/d. Proposed modifications to the FPSO are expected to increase production to 250,000 bbl/d. In October 2004, Italian firm Saipem SpA was awarded a $440 million contract to build a subsea pipeline connecting offshore Rosa with onshore facilities near Luanda. In February 2004, Sonangol approved BPs plans to develop the Greater Plutonio project in Block 18. Five fields (Colbalto, Cromio, Galio, Paladio, Platina, and Plutonio) will be developed using a single FPSO. Scheduled to come online in 2007, the Greater Plutonio project is expected to produce over 200,000 bbl/d. Total cost of the project is estimated at between $2 and $3 billion. In June 2004, FMC Technologies was awarded a $27 million contract for the provision of services at the Plutonio project. Three months later, BP announced an additional $80 million contract with FMC for the supply of subsea systems. Two additional discoveries on the block are BPs Chumbo-1 and Cesio-1 wells. BP maintains a 50 percent interest as the operator of Block 18 and Sinopec owns the other 50 percent share. Although Indias ONGC Videsh signed an agreement with Shell to buy a 50 percent stake in Block 18 in April 2004, Sonangol refused to approve the purchase. Instead, Sonangol accepted a bid coupled with a $2 billion aid offer from China in October 2004. In February 2003, Devon Energy acquired a 25 percent stake in Block 24 from ExxonMobil. This acquisition increased Devon Energys total share of the block to 40 percent, making the company the operator of the block. ExxonMobil retains a 20 percent share. Sonangol and Malaysias Petronas are also partners on the block. ExxonMobil reported the first oil discovery on the block in June 2001, but later declared the Semba-1 well, which had a flow rate in excess of 3,000 bbl/d, to be noncommercial. In 2005, five new discoveries were made on Block 31, which brings the total of discovered wells on the block to nine. All nine wells have tested at significant flow rates, with the eighth well, Astraea-1, testing at the highest flow rate of 6,500 bbl/d. The block is located 118 miles off the Angolan coast. BP, as the operator of the block is still exploring development options. Other stakeholders in the block include ExxonMobil, Sonangol, Statoil, Marathon, and Total. Totals first exploration well on Block 32 was a success. Gindungo, which lies 40 miles from Block 17s Girassol find, tested at rates of 7,400 bbl/d and 5,700 bbl/d in two zones. In April 2004, Total announced a new Block 32 discovery, Canela-1, from which a test reservoir produced 6,800 bbl/d. Sonangol and Total announced an additional oil discovery at OECanela-1 in June 2004. The find produced a test flow of 6,800 barrels per day from a lone reservoir. Total, as operator of the block, is joined with partners Marathon Oil, Sonangol and ExxonMobil.