Imara African Cement Report Africa, the last cement frontier Angola ...

BP PLC
Bloomberg ticker: BP/:LN
Market Cap:
£87.4bn
PER: 6.0x
Figure 17: Chevron 1 yr price chart vs MXEF:IND
BP is present in four major deep-water licences offshore Angola
(Blocks 15, 17, 18 and 31) and is operator in Blocks 18 and 31. In
addition, BP holds a 13.6% equity stake in Angola´s first LNG
project. In August 2010, Total, as operator of Block 17 (BP
16.67%), announced the development of the Cravo Lirio Orquidea
Violeta (CLOV) project and the award of the principal contracts.
This project is the fourth development in Angola‟s deep-water offshore Block 17, after Girassol, Dalia and
Pazflor, and is located approximately 140 kilometres from Luanda and 40 kilometres north-west of Dalia in
water depths ranging from 1 100 to 1 400 metres. The CLOV development will lead to four fields coming on
stream.
Drilling is expected to start in 2012 and first oil is expected in 2014. A total of 34 subsea wells are planned to
be tied back to the CLOV FPSO unit, which will have a processing capacity of 160k bpd and a storage capacity
of approximately 1.8 million barrels. Sanctioned in 2008, PSVM comprises the development of the Plutão,
Saturno, Vênus and Marte fields, in a water depth of approximately 2 000 metres, some 400 kilometres northwest
of Luanda. In 2010, BP commenced the offshore stage of this major project with the arrival of several
vessels into Angola waters. Pile installation has been completed and installation of the production flow lines
started.
Figure 18: Total 1 yr price chart vs MXEF:IND
Total SA’s operations in Angola
Bloomberg ticker: FP:FP
Market Cap:
€89.4bn
PER: 7.1x
Total´s Production comes mainly from Blocks 17, 0 and 14.
Highlights of the period 2008 to 2010 included several discoveries
on Blocks 15/06 and 17/06, and progress on the major Pazflor and
CLOV projects. Deep-offshore Block 17 (40%, operator) is Total‟s
principal asset.
Source: Bloomberg
Source: Bloomberg
It is composed of four major zones: Girassol and Dalia producing, Pazflor (production is scheduled to begin in
late 2011) and CLOV (based on Cravo, Lirio, Orquidea and Violeta discoveries) which was launched in 2010
(start-up of production is expected in 2014). Total is also one of the partners in the Angola LNG project (13.6%
- see below). On Block 15/06 (15%), four major discoveries were announced in 2010. Studies are underway to
demonstrate the feasibility of a first development area that would include the discoveries located on the
northwest portion of the block.
ENI SpA’s operations in Angola
Bloomberg ticker: ENI:IM
Market Cap:
€64.0bn
PER: 9.2x
Figure 19: ENI SpA 1 yr price chart vs MXEF:IND
ENI´s exploration activities yielded positive results in:
• Block 0 (9.8% interest) with the liquids and gas discovery
located in the Vanza area;
• Development Areas in former Block 14 (20% interest) with the
Lucapa 6 appraisal oil well. Activities are underway for
assessing its possible development opportunities following the
Source: Bloomberg
area‟s mineral potential revaluation;
• Operated Block 15/06 (35% interest) with the appraisal wells of the Cinguvu (Cinguvu-1), Cabaca (Cabaca
South East-2) and Mpungi (Mpungi 1 e 2) oil discoveries.
The appraisal activities were completed ahead of schedule with commitments increasing the initial resource
estimate to develop the East Hub and West Hub projects. In February 2010, the West Hub concept definition
(FEED) was approved while the final investment decision was sanctioned at year end. Start-up is expected in
2013 with peaking production at 22k bpd.
21