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OIL/GAS FIELD MACHINERY (OGM) / OIL, GAS, MINERAL PROD/EXPLOR SERV.(OGS)OverviewReturn to top2004 estimate($million)2005 estimate($million)2006 estimate($million)Total Market Size 800 900 1000Total Local Production 10 20 20Total Exports 0 0 0Total Imports 790 880 950Imports from the U.S. 600 650 750The above are unofficial U.S. Embassy estimatesAngola is currently the second largest oil producer in sub-Saharan Africa after Nigeriawith production in December 2006 exceeding 1.4 million barrels per day and may reach2.0 million during 2007. Angola is a member of OPEC beginning in 2007. Some blocksare well established, such as Block 0 operated by Chevron, while production from Blocks15, 17, 18, and 24, began in 2005. Much of Angola’s future oil production will come fromdeepwater and ultra-deepwater blocks.OpportunitiesReturn to topOn May 22, 2006, Sonangol announced winners of an international bidding round forseven new oil concessions in Blocks 1, 5, and 6 (shallow-water); and 15,17, 18, and 26(deepwater), among them ENI, which offered a USD 900 million signature bonus, andSSI with 1.1 billion.In the first quarter of 2006, Sonangol conducted another licensing round for 23 onshoreconcessions in the Kwanza Basin and the ultra deepwater blocks 24 and 25, where ENI,Sinopec, and Petrobras won as operators.A consortium of international oil firms, led by Chevron, is developing a $4 billion liquefiednatural gas (LNG) plant in Soyo to take advantage of the estimated 25 trillion cubic feetof natural gas reserves. In mid-2005, the joint venture partners for the LNG facilitysigned Front-End Engineering Design (FEED) contracts for the facility with OverseasBechtel Inc. on one hand and a consortium of Kellogg Brown & Root Inc., JGCCorporation of Japan, and Technip USA Corporation, to execute 15-month FEEDstudies. These studies are completed and a final investment decision has been made,with one of the two contractor groups Bechtel Inc. has been awarded the contract toperform engineering, procurement, construction and commissioning (EPCC) activities forthe facility.Angola’s Finance Ministry has partnered with China to move ahead with construction ofa USD 3.5 billion oil refinery in Lobito. The state oil company Sonangol announced inDecember 2006 that construction should start in mid 2007. The refinery will be built as a2/13/2007