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

In January 2011, Eni was awarded rights to explore
and the operatorship of deep offshore Block 35,
with a 30% interest. The agreement foresees the
drilling of 2 commitment wells to be carried out in
the first 5 years of exploration phase. This deal is
subject to the approval of the relevant authorities.
Within the activities for reducing gas flaring in
Block 0, activity progressed at the Nemba field in
Area B. Completion is expected in 2013 reducing
flared gas by approximately 85%.
Figure 20: Map showing underwater gas pipeline
Main projects underway in the Development Areas
of former Block 15 (20% interest) included:
• the satellites of Kizomba Phase 1, with start-up
expected before mid-2012 and peaking
production at 100k bpd (21k bpd net to Eni) in
2013;
• Drilling activity at the Mondo and Saxi/Batuque
fields to finalize their development plan.
• Eni holds a 13.6% interest in the Angola LNG
Limited (A-LNG) consortium responsible for the
construction of the LNG plant in Soyo.
Angola LNG; The next big money spinner
Angola has proven gas resources to supply a nominal 5.2m tonnes/year (6.8bn m 3 /y) Liquefied Natural Gas
(LNG) plant for over 20 years. According to the Angola LNG website (www.angolalng.com), it is estimated
that the country has natural gas reserves of 10.5 trillion cubic feet (297bn m 3 ). About 80% of all gas that is
pumped is flared due to the limited storage and processing capacity. The plant will be supplied by the gas
associated with production from Blocks 0, 14, 15, 17 and 18.
The LNG plant will have a processing capacity of approximately 1b cubic feet per day of natural gas and
produce 5.2 million tonnes per year of LNG, condensates and LPG. It is envisaged that the plant will yield
10.6 trillion cubic feet of gas over a period of 30 years. The project is currently on schedule to start
production in the first quarter of 2012. LNG is expected to be delivered to the United States market at the
re-gasification plant in Pascagoula, which currently under construction in Mississippi.
Sonangol Refinery - Still on the cards
In late 2008 the technical execution of the project was awarded to an American company Kellogg Brown &
Root (KBR) having the cost of the project increased to US$8bn with production (240k bpd) projected to start
in 2011. Investors for this project are still being finalised and this project remains of strategic significance for
the country.
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