Rosneft considers Angolan upstream market entry?

Rosneft delegation undertook a working visit to the Republic of Angola yesterday, April 22.

The delegation, led by the Company’s Vice-President Andrey Shishkin, held talks with Minister of Petroleum José Maria Botelho de Vasconcelos, administration of Ministry of Electricity and Water represented by João Baptista Borges, and President of the National Oil Company Sonangol Francisco de Lemos José Maria.

Among other things, potential scenario of Rosneft entering Angolan upstream market was discussed during the visit.

Angola is the second largest producer of oil in Africa, after Nigeria. Proved oil reserves are 1.7 billion tons, and liquid hydrocarbons prevail in the resource portfolio (up to 3.5 billion tons). The blocks are mostly distributed under Production Sharing Agreement, and Sonangol has stakes in most projects.

Nearly all developed fields of Angola are offshore (75% of production is from offshore projects), and concentrated in Bas-Congo basin, and the largest fields are located at great depths. In recent years, following the discovery of large fields, such as Kizomba, Khikomba, Zhirasol, Jasmine, Dakhlia, Great Plutonio etc., the most prospective area for search of hydrocarbon reservoirs is represented by deep water and ultra deep water territory of Congo and Cuanza basins (water depth from 600 to 2500 meters).

According to Rosneft, Cuanza basin ranks among the three largest explored oil and gas bearing complexes. Yet no major discoveries have been made in the Cuanza basin.

[mappress]

April 23, 2014