INTSOK Annual Market Report (2011-2014) ANGOLA

INTSOK Annual Market Report (2011-2014) 

– Report prepared by Rystad Energy 

| June 2010 | 

ANGOLA

INTSOK Annual Market Report 2010 

Main Markets - Angola 

Angola market introduction 

Angola’s production reached almost 2 mboepd in 2008 compared to a previous level 

of 750 kboepd in 2000. The increase was driven by deepwater developments coming 

in production. Production in 2009 amounted to 1.9 mboepd with oil accounting for 

more than 95%, keeping Angola among the top 15 oil producers globally. Going 

forward, production is expected to see a slight decline towards 2012, primarily led by 

a decrease in production on the continental shelf. From 2012 onwards, production is 

expected to recover and experience a substantial growth reaching levels up to 3.75 

mboepd towards 2020. This growth is forecast to mainly come from deep and ultra 

deep water developments. 

As of 2010, reserves in producing assets amounted to 6.7 bnboe, with over 90% 

coming from oil. Resources in fields under development accounted for more than 3 

bnboe with similar levels of liquids and dry gas while resources in discoveries 

amounted to 10 bnboe. 

The end of Angola’s long-running civil war in 2002 coincided with a significant lift in its 

oil production. The considerable rise in Angola’s fortunes was confirmed when the 

country formally joined OPEC in 2007. During 2009, Angola held the OPEC 

presidency and became, at least for the year, Africa’s largest crude oil producer 

(largely due to shut-in of Nigerian production caused by Niger Delta security issues) 

with an output of 1.82 mbblpd. 

The NOC Sonangol is the architect behind the crude oil windfall profit tax regime that 

currently regulates the E&P sector in Angola. In 2008 oil revenue from this tax regime 

accounted for over 80% of the state’s total revenue stream. Established in 1976, 

Sonangol owns the hydrocarbon rights on behalf of the state, acts as an E&P 

company, and is the concessionaire and tax collector in the PSCs it enters into with 

IOCs. It can have a major influence on the choice of contractor awards, and is a 

strong driver for local content policies. 

Local company priority is given for contracts requiring limited capital and technical 

competence. Angolan state and/or private companies receive preferential rights if 

their proposal is not more than 10% higher than what is proposed by other 

companies. All companies involved in oil exploration and production must contribute 

to the training of nationals. There are deadlines for a progressive substitution of 

expatriate workers in national companies with locals, with the staffing goal being 70% 

Angolans. 

However, Sonangol recognized before the post-civil war oil boom that mandating 

complete adherence to local content regulations before local capacity had been 

developed would have driven away major investments, and thus Sonangol has so far 

been flexible in its approach to IOCs regarding local content. Sonangol has been able 

to cooperate with IOCs in ensuring that technology and skills transfer occurs during 

projects, and has set up local companies in partnership with service contractors such 

as Technip, Saipem, FMC and Acergy. 

Though Sonangol has managed to improve the status of the local service providers, 

local infrastructure and skill sets are seen to be limited – all but the simplest 

construction materials and technical expertise must be imported. Luanda harbor is 

congested and does not have the capacity to deal with rising imports, leading to 

frequent backlogs and delays in material delivery. New harbors are planned, but it will 

take time for them to materialize. Onshore exploration had been stymied for a long 

time by the civil war, and is still hindered by rebel activity in the Cabinda region. 

In spite of the drawbacks, Angola and Sonangol have been able to attract a balanced 

mix of players. Substantial production operations are carried out by Majors: BP, 

ExxonMobil, Chevron and Total are all having operated production from Blocks 0, 14, 

15, 17 and 18, with ENI expected to join the operator’s club in a few years with 

production from Block 15/06. Sonangol became a deepwater operator in 2009 with 

the start of Gimboa. Significant non-operators include Statoil and Sinopec. 

While Sonangol has been able to position itself as a reliable partner for IOCs and 

service contractors, Angola continues to have a distinct problem when it comes to 

doing business as corruption and bureaucratic mismanagement continue to mar 

economic progress. Setting up and operating a business in Angola is considered by 

industry to be more costly than normal. Angola is 162nd on Transparency 

International’s Corruption Perceptions Index (down from 158th in 2008). 

2



1 Angola offshore market 

The surge in Angolan crude production over the past few years was driven by 

technologically complex deepwater developments, helmed by many of the largest 

IOCs. The coming years are expected to bring another upward production surge to 

2.5-3.0 mbblpd by the end of the decade, with the newest crude oil production 

additions coming from a mix of deepwater and ultra-deepwater projects. 

Natural gas production in Angola is primarily associated gas production, and is in 

most cases vented, flared or re-injected. Plans are underway to capture and export 

most of the wasted gas as LNG, and some gas is also being earmarked for domestic 

electricity generation. 

Sanctioned projects expected to start up by the end of 2012 include Pazflor (Total) in 

deepwater Block 17, PSVM (BP) in ultra-deep water Block 31, and Kizomba Satellites 

Phase I (ExxonMobil) in deep water Block 15. Block 17 is expected to see FID on the 

CLOV project (Total) during 2010, while BP expects FIDs on its deep water Block 18 

West project and the PAJ project in Block 31 during 2011, and Chevron also plans a 

2011 FID for Mafumeira Sul in the shallow water Block 0 concession. Chevron figures 

highly in the list of projects in FEED or pre-FEED stage, with several projects pending 

within deepwater Block 14: Lucapa, Lianzi and Negage. ENI is reportedly fast-tracking 

its Sangos & N’Goma discoveries in deep water Block 15/06, with plans to shift the 

Xikomba FPSO once that field has reached economic cut-off. Later phases of 

ExxonMobil’s Block 15 Kizomba satellites will add further production growth. 

Thus, Angola offshore continues to develop in a rapid pace. Questions are being 

raised whether the service industry has the capacity to handle all the developments 

planned by the operators. The past years have seen schedules sliding for several 

Angolan offshore projects, and the future will probably bring similar delays. One 

should also note that as an OPEC member Angola is nominally bound to OPECmandated 

production cuts. During 2009, Angola complied with about 40% of its 

mandated OPEC-cuts. 

The Angolan offshore market is characterized by large field development projects. 

The market saw a slight reduction in 2009 as the field development and subsea 

expenditure dropped. The market grew steadily over the period 2004-08 with large 

projects such as Benguela-Belize (Chevron), Dalia (Total), Rosa (Total), the phased 

Kizomba development (ExxonMobil), and Greater Plutonio (BP) being executed. As 

these projects moved from the investment to the production phase, Pazflor (Total) and 

CUBEAUTO Chart 

S(ChartType:ColumnStacked 

;Legend:Custom;GridLinesX:off;GridLinesY:off;LegendX:0;LegendY:0;Palette 

:Default;PaletteText:off) 

F(Country:Angola;On Off Shore:Offshore) 

C(INTSOK Category:Reservoir and Seismic,Field 

Development,Subsea,Well,Operations,Non E&P Expenditure) 

R(Year:2004-2014) 

V(Value:USD million) 

Figure 1: Offshore Market by Category – Angola 

Table 1: Offshore Market by Category – Angola 

CUBEAUTO Report 

S(FontSize:6;Format:#,##0) 

F(Country:Angola;On Off Shore:Offshore) 

C(Year:2004-2014) 

R(INTSOK Category Table:R&S,Field Development,Subsea,Well,Operations,Non E&P) 


USD million 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 

R&S 338 392 438 711 755 601 674 435 326 264 464 

Field Development 1 023 1 182 1 577 2 144 2 117 1 269 1 211 1 334 1 085 1 457 3 431 

Subsea 1 278 2 097 3 438 2 589 1 747 2 067 4 212 4 018 3 163 3 083 4 755 

Well 1 632 2 375 2 526 3 923 4 356 3 957 4 570 3 494 2 569 2 788 3 865 

Operations 1 284 1 465 1 711 2 515 2 984 2 428 2 353 2 284 1 951 2 068 2 837 

Total 5 554 7 511 9 689 11 883 11 959 10 322 13 019 11 565 9 094 9 661 15 351 

PSVM (BP) were the only major new development projects sanctioned in 2007-2008. 

The market seems likely to increase in 2010-11 with projects such as PSVM (BP), 

Kizomba D (ExxonMobil), and CLOV (Total) in the pipeline. In 2014 contributions from 

these projects together with projects such as the N’Goma and Sangos developments 

(ENI) will move the overall market beyond USD 15 billion. 

3







F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Reservoir and 

Seismic,Field Development,Subsea,Well,Operations,Non E&P Expenditure) 

C(INTSOK Operator Segment) 



Figure 2: Offshore Market by Operator Segment – Angola 

Table 2: Offshore Market by Operator Segment – Angola 

CUBEAUTO USD millionReport 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 

Major S(FontSize:6;Format:#,##0) 5 265 7 166 9 259 11 088 10 578 9 337 11 878 

F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Reservoir and Seismic,Field 

NOC Development,Subsea,Well,Operations,Non 248 285 331 E&P Expenditure) 513 978 603 425 

9 991 

666 

6 895 

1 293 

7 869 

723 

12 880 

828 

INOC C(Year:2004-2014) 27 27 82 71 359 356 207 193 157 232 219 

Other 

R(INTSOK Operator Segment) 

14 33 


Total 5 555 7 511 

16 

9 689 

211 

11 883 

44 

11 959 

26 

10 322 

509 

13 019 

716 

11 565 

749 

9 094 

837 

9 661 

1 424 

15 351 

Majors dominate the Angolan offshore market with ExxonMobil, BP, Chevron, Total, 

and ENI constituting around 90% in 2009. Sonangol is the largest non-major operator 

in 2009 followed by Statoil. Smaller operators including Tullow Oil, Maersk and 

Petrobras seem likely to increase their share in 2011-14, but the operator composition 

will remain concentrated with the established companies dominating. 

1.1 Reservoir and Seismic 





F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Reservoir and 

Seismic) 

C(INTSOK Market Definition) 



Figure 3: Offshore Reservoir and Seismic Market – Angola 

Table 3: Offshore Reservoir and Seismic Market – Angola 




F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Reservoir and Seismic) 


R(INTSOK Market Definition Table) 


R&S 338 392 438 711 755 601 674 435 326 264 464 

Total 338 392 438 711 755 601 674 435 326 264 464 

Offshore Angola was one of the world’s leading exploration frontiers in the 2004-08 

period with seismic spend increasing from USD 338 million to USD 755 million. From 

2010 the market is expected to decline towards 2013 before activity is again expected 

to increase. 

4



1.2 Field Development 



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Cols:1;LegendRows:3;Palette:Default;PaletteText:off) 

F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Field 

Development) 




Figure 4: Offshore Field Development Market by Definition – Angola 

Table 4: Offshore Field Development Market by Definition – Angola 


Engineering S(FontSize:6;Format:#,##0) 254 426 774 819 687 535 

F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Field Development) 

PC&I 


496 498 530 912 968 490 

650 

372 

661 

442 

510 

400 

717 

535 

1 848 

1 101 

SEP&V R(INTSOK Market Definition 273 Table) 258 272 414 461 244 189 231 176 205 482 

Total 


1 023 1 182 1 577 2 144 2 117 1 269 1 211 1 334 1 085 1 457 3 431 

As major field development projects were delayed due to the financial crisis, the 

market for new platforms and floating facilities dropped in 2009 to USD 1.3 billion. 

This market is likely to remain at 2009 level until 2012 before growing rapidly in 2013- 

2014. New floating facilities for PSVM (BP) and CLOV (Total) and modifications of 

existing platforms help maintain the current level. Projects such as N’Goma, Cabaca 

Norte, and Sangos (ENI), Malongo (Chevron), Pitangueira and Bananeira (Tullow Oil), 

and PAJ (BP) contribute to growth towards USD 3.4 billion in 2014. 

1.3 Subsea 





F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Subsea) 




Figure 5: Subsea Market by Definition – Angola 

Table 5: Subsea Market by Definition – Angola 


SURF S(FontSize:6;Format:#,##0) 819 1 342 2 197 1 602 1 014 

F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Subsea) 

Subsea 


Equipment 440 720 1 180 860 542 

1 228 

656 

2 630 

1 410 

2 490 

1 336 

1 926 

1 033 

1 854 

993 

2 928 

1 570 

Subsea R(INTSOK Services Market Definition 19 Table) 34 62 127 191 183 171 192 204 236 257 

Total 


1 278 2 097 3 438 2 589 1 747 2 067 4 212 4 018 3 163 3 083 4 755 

Subsea spend in Angola fluctuated significantly over the years 2004-09 with a USD 

3.4 billion top being reached in 2006 stemming from simultaneously high spending 

levels at the Kizomba (ExxonMobil), Greater Plutonio (BP), Rosa (Total) and Dalia 

(Total) developments. Growth in the period 2008-10 stems from the Pazflor (Total) 

project. Expenditure levels will remain high with a 2011 spend of USD 4.0 billion as 

the Pazflor and PSVM (BP) projects proceed. The longer term market level will be 

secured through CLOV (Total) and Kizomba D (ExxonMobil). As subsea wells and 

pipelines age, there will be a continuously increasing market for subsea services, 

especially maintenance work carried out by ROV. This market is forecast to grow from 

USD 171 million to USD 257 million over the period 2010-14. 

5



1.4 Well 



;Legend:Custom;GridLinesX:off;GridLinesY:off;LegendX:0;LegendY:0;Legend 

Rows:2;LegendCols:2;Palette:Default;PaletteText:off;MaxValue:6000) 

F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Well) 




Figure 6: Offshore Well Market by Definition – Angola 

Table 6: Offshore Well Market by Definition – Angola 


Rigs S(FontSize:6;Format:#,##0) 

and Drilling 695 1 058 1 196 2 042 2 292 

F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Well) 

Drilling 


Systems 281 389 389 560 609 

2 064 

548 

2 438 

609 

1 878 

460 

1 344 

348 

1 546 

341 

2 150 

478 

Downhole R(INTSOK and Market Well Definition 656 Table) 928 940 1 322 1 456 1 345 1 523 1 157 877 901 1 236 

Total 


1 632 2 375 2 526 3 923 4 356 3 957 4 570 3 494 2 569 2 788 3 865 

The well related market offshore Angola has traditionally been dominated by rig spend 

due to a high level of exploration drilling. The market grew steadily from 2004 to 2008. 

The financial crisis had a noticeable effect on the market as it dropped slightly in 

2009. Development drilling for Pazflor (Total) and PSVM (BP), and infill wells in 

existing fields will grow the well market through 2010 but this will be followed by a 

period of less drilling before the market picks up again in 2014. 

1.5 Operations 




:Default;PaletteText:off;MaxValue:4000;MajorUnit:1000;MinorUnit:1000) 

F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Operations) 




Figure 7: Offshore Operations Market by Definition – Angola 

Table 7: Offshore Operations Market by Definition – Angola 



F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Operations) 





Operational Services 459 489 585 842 1 026 809 737 778 699 713 994 

Maintenance 443 471 562 809 985 772 702 743 666 680 956 

EI&T 66 70 84 121 147 115 105 111 99 102 143 

Logistics 316 436 481 742 825 733 808 645 487 551 717 

Decommissioning 0 0 0 1 0 0 0 7 0 22 27 

Total 1 284 1 465 1 711 2 515 2 984 2 428 2 353 2 284 1 951 2 068 2 837 

Operations related spend has increased steadily offshore Angola as an increasing 

number of facilities have come on stream. As many of the services within this 

segment are exposed to capex fluctuations and price cuts forced on the suppliers by 

the operators in the wake of the financial crisis, there was a drop in 2009 from USD 

3.0 billion to USD 2.4 billion. From 2009 the market is expected to decline towards 

2013. 

Decommissioning is not a large market offshore Angola, but there is some smaller 

platform decommissioning work to be carried out in the period 2011-14. 

6



1.6 INTSOK priority projects 

Block 14 Lianzi, Lucapa, and Negage projects – Chevron 

Block 14 is operated by Chevron (31% ownership) with partners Eni (20%), Total 

(20%), Sonangol (20%) and Galp Energia (9%). 

Block 14 has been through significant development activities in recent years, including 

the BBLT complex with the Belize-Benguela (BB) compliant piled tower (CPT) and the 

Lobito and Tomboco subsea tie backs to the BB CPT with first oil during 2006. During 

the second half of 2009, first oil was produced from the Tombua-Landana CPT. 

Chevron contemplates tie back of smaller discoveries to the new infrastructure. The 

most advanced opportunity is the Lianzi discovery located within the shared Angola- 

Congo Joint Development Area, 25 km west of the BBLT area in 900 m water depth. 

The expected development solution is subsea tie back to the BB platform. Chevron 

awarded FEED contract for the subsea system connecting pipelines and topsides 

modifications on the BB platform to Granherne in 2008. Preliminary requirements are 

expected to include 3 production and 3 water injection wells, 1 each of contingency 

production and injection wells, and 45 km pipelines to the BB platform. Peak 

production of 40 kbblpd is expected by 2014, subject to final investment decisions. 

The second opportunity in Block 14 is the Lucapa field, located in 1,200 m water 

depth. Chevron is expected to award a pre-FEED contract to assess 3 potential 

development scenarios including standalone FPSO, TLP with FSU, and TLP with 

FPSO. Partner Galp Energia expects the project to come online 2014 at rate of 100- 

130 kbblpd. Chevron plans for FEED award by end 2010. 

The third opportunity is the Negage discovery from 2002 in the southwest portion of 

Block 14, located in 1,450 m water depth. Uncertainty on the reserves size and need 

for unitization and revenue sharing agreement between Angola and the Democratic 

Republic of Congo (DRC) continues to delay the project investment decisions. 

Chevron’s original preference was for a standalone FPSO, with early EOIs issued 

2004 for a vessel with 1.5 mbbl storage, processing 75 kbblpd crude and 100 Mcfpd 

gas. An alternative solution is now though to include a 32 km subsea tieback to Eni’s 

planned FPSO in Block 15/06. 

Block 15 Kizomba Satellites Phase 1 – ExxonMobil 

Block 15 is operated by ExxonMobil (40% ownership) with partners BP (26.7%), Eni 

(20%) and Statoil (13.3%). Block 15 development activities to date include the 

Kizomba A, B, and C FPSOs and has made Block 15 one of the most prolific blocks in 

Angola, having produced 1 billion bbl oil by end 2009. 

Current development projects in Block 15 include satellite developments with subsea 

tie back of additional wells to the FPSOs. Phase I will include production from Clochas 

(discovered 2003) and Mavacola (2001) fields with subsea tiebacks of 5-6 wells to 

Kizomba A & B FPSOs, targeting 250 mbbl oil reserves, first oil 2013, and peak 

production of 140 kbblpd. 

ExxonMobil received government approval of the Phase I contractors during 2009. 

AMEC carried out FEED, and provided detailed design, procurement and logistics 

support services in conjunction with local JV partner Paragon Angola. Saipem won 

contracts for pipelines, umbilicals, risers and subsea installation. Oceaneering will 

provide electro-hydraulic steel tube umbilicals, while GE Vetco Gray will supply 

subsea production equipment, including deepwater tree connectors, manifolds, 

jumpers and connectors and controls equipment. Saipem is expected to commence 

drilling during 2011. 

Future phases for Block 15 include discoveries located near the current FPSO hubs, 

such as Bavuca, Reco-Reco, Vicango, Kakocha, and Mbulumbumba. These 

discoveries will most likely be tied in to the Kizomba C FPSO. 

7



Block 17 Pazflor project – Total 

Pazflor is Total’s third development hub in Block 17, with 40% ownership share and 

partners Statoil (23.3%), ExxonMobil (20%) and BP (16.7%). The Pazflor hub includes 

individual discoveries Perpetua (discovered 2000), Hortensia (2002), Zinia (2002), 

and Acacia (2003). Hub location will be 150 km offshore and 40 km northeast of Dalia 

field, with the fields located in 600-1,200 m water depth. Similarly to Girassol and 

Dalia, individual fields will be subsea tie backs to a hub FPSO. Overall Pazflor project 

capex estimate is USD 9-10 billion and first oil scheduled for second half 2011. 

South Korean Daewoo Shipbuilding & Marine Engineering (DSME) won contract to 

supply newbuild FPSO with 82,000 tonne hull, 32,000 tonne topsides, processing 

capacity 200 kbblpd oil and 150 Mcfpd gas, and storage capacity 1.9 mbbl. KBR has 

been subcontracted by DSME for topsides design, engineering and procurement. 

Pazflor will include 2 complex subsea production systems for heavy oil (17-22 deg 

API) from Miocene reservoirs and light oil (35-38 deg API) from Oligocene reservoirs. 

Production of heavy and viscous oil will include the world’s first application of seabed 

gas/liquid separation and hybrid pumps which eliminates need for loops for hydrate 

control. Lighter oil flow is assured by a pipe-in-pipe envelope, insulated by rock wool. 

The project overall includes 25 producer wells, 22 water injectors, 2 gas injectors, 17 

risers, 3 manifolds, 175 km flow lines and 90 km umbilicals. 

Technip won contracts to design, fabricate and install 80 km production and water 

injection rigid flow lines, conventional flexible risers and integration production bundle 

(IPB) risers and 60 km umbilicals. Acergy won a contract for 55 km water injection 

lines, gas injection, gas exports lines, umbilicals and more than 20 rigid jumpers. 

Acergy will install manifolds, 3 subsea separation units with associated umbilicals and 

FPSO mooring lines. Dresser Rand will supply gas compression packages and APL 

will provide the turret loading system. 

FMC won the main EPC contract for the subsea structures, including supply of 49 

christmas trees and wellhead systems and subsea separation and pumping stations. 

Saipem starts development drilling during 2010 as part of a USD 1 billion contract for 

the newbuild Saipem 12000 drillship. 

Going forward, additional sub contracts are expected to be awarded from the main 

project suppliers. 

Block 17 CLOV project, recurring supplier selection during 2010 – Total 

CLOV is Total’s fourth development hub in Block 17, with 40% ownership share and 

partners Statoil (23.3%), ExxonMobil (20%) and BP (16.7%). The development project 

includes the Cravo, Lirio, Orquidea and Violeta discoveries located in 1,350 m water 

depth. 

Similarly as for earlier hubs in Block 17, basic engineering studies by Doris 

Engineering concluded with a FPSO/subsea tie back concept as the preferred 

solution. EMC3 won contract for subsea conceptual studies. CLOV will include 43 

subsea trees tied back to a newbuild FPSO with crude processing capacity of 160 

kbblpd, gas processing capacity of 250 Mcfpd and storage capacity of 1.6 mbbl. 

CLOV’s SURF system will include 122 km of production, injection and gas export flow 

lines, 100 km of umbilicals and 25 km of risers. The subsea production system 

involves separation and processing equipment and up to 34 wellheads in addition to 

manifolds. 

Contract awards have not been announced by project partners although bidding 

process for the FPSO, SURF package and subsea production systems have been 

reported to be in progress. Total expected FID for CLOV by mid 2010, with 

development drilling starting later in 2010 and first oil from 2014. This time schedule is 

yet to be updated following final selection of suppliers. 

8



Block 18 Plutonia project, FID expected 2011 – BP 

Block 18 is operated by BP (50% ownership) with partners Sonangol (12.5%) and 

Sinopec (37.5%). Key development project is Plutonia located 200 km offshore, 

northwest of Luanda, in water depth of 1,500 m. Additionally, the western fields 

Platina and Chumbo, 40 km west of Plutonia, and Cesioa, may be tied back. 

Expectations are that BP will decide on a converted FPSO from its existing frame 

agreements with Modec and SBM. BP has indicated 2011 FID for the project. 

Block 31 PSVM project ongoing, PAJ project to be decided 2011 - BP 

Block 31 is operated by BP (26.7% ownership) with partners ExxonMobil (25%), 

Statoil (13.3%), Marathon (10%) and Total (5%). By end 2009, Block 31 includes 20 

discoveries located in 1,500-2,450 m water depth. Multiple development hubs have 

been identified, each hub likely developed via subsea tiebacks to FPSOs. 

PSVM is the most advanced hub in terms of planning and includes discoveries Plutao, 

Saturno, Venus and Marte located northeast in Block 31. Project approval was mid 

2008, first oil is expected 2012. Future tie-ins to the FPSO could include Terra and 

Leda discoveries. 

Development will include a converted FPSO with 150 kbblpd plateau production. 

FPSO contract was won by Modec. Cameron will supply subsea production systems, 

and Heerema, Aker Solutions and Technip will supply umbilicals, flowlines, and risers. 

48 production and injection wells are planned for. 

In anticipation of future projects in Block 31, BP has frame agreements with Modec 

and SBM for FPSOs and the other suppliers for the remaining hardware and services. 

Future FPSO designs are expected to be similar to enable fast-tracking. 

The second hub, with Final Investment Decision expected 2011, is located southeast 

in Block 31 and will include discoveries Palas, Astraea, and Juno (PAJ) located in 

1,600-1,750 water depth. The second hub could be in production from 2015. A 

contract award to SBM for FPSO under the frame agreement is expected 2010. FPSO 

is expected to have 2 mbbl storage capacity and 14,000 tonne topsides. Tendering for 

subsea trees and pipelines is expected from end of 2010. 

The third hub is likely to follow 12-18 months after PAJ. Also with a FPSO-based 

subsea tieback development, this will include the discoveries Ceres, Hebe, Titania, 

Cordelia, Portia and Miranda fields, located in the central parts of Block 31. 

9



Block 32, up to 6 development projects – Total 

Block 32 includes 12 discoveries by end 2009. Block 32 is operated by Total (30% 

ownership) with partners Sonangol (49%), ExxonMobil (15%), Marathon (10%) and 

Galp Energia (5%). 

The most advanced development plan has been for the south eastern discoveries 

Gindungo, Canela, and Gengibre (GCG), with first oil expected 2016. Original 

development plans included a newbuild 200 kbblpd FPSO for GCG, but use of a 

converted unit is also reported with Modec conducting a study of HSE implications 

from use of a converted vessel. 

Additionally, Total has reported a stand-alone development of Gengibre from a 60 

kbblpd FPSO. In that case, Gindungo and Canela are likely to be a second 

development project. A third project is likely based on the larger Louro field with 

possible subsea tieback of Salsa and Mostarda discoveries. 

Another 3 development projects could include Manjericao and Colorau; Cominhos 

and Alho; and Caril and Cola. 

Angola, LNG Soyo under construction, gas exports from 2012 – 

Sonangol/Chevron 

Angola LNG project objective is to monetize gas from offshore Blocks 0, 1, 2, 14, 15, 

17 and 18. Blocks 1 and 2 contain non-associated gas resources, while 0, 12, 14, 15, 

17 and 18 are associated gas. Plant location at Soyo is 300 km north of Luanda. 

Project is operated by Chevron (36.4% ownership) with partners Sonangol (22.8%), 

Total (13.6%), BP (13.6%) and ENI (13.6%). Sonangol reports that more than 10 Tcf 

of gas resources are available for the LNG plant with additional resources as new oil 

projects are developed. 

Final Investment Decision (FID) for the project was made December 2007. 

Construction of the LNG plant began 2008 and was reported on schedule during 

2009, Chevron estimates the onshore plant development cost will be USD 9 billion. 

First LNG shipment is expected by the partners to take place during 2012. 

March 2010 Angola LNG’s contractor Acergy/SpieCapag reported successful 

installation of the critical Beach Crossing for the 3 offshore pipelines under a USD 550 

million contract that is part of the Angola Pipeline Network. 

The development concept includes the onshore LNG plant with a capacity of 5.2 

million ton per year, with design capacity for 1.1 bcfd of gas. Gas will be gathered 

from offshore blocks and then routed to shore via a 250 km pipeline. In addition to the 

export of LNG and related gas liquids products, the plant will supply up to 125 Mcfpd 

for domestic gas needs in Angola. 

Contract awards include advanced engineering and procurement to be carried out by 

Bechtel, site preparations to Boskalis/Jan de Nul Dredging. Saipem/Petromar won the 

contract for the LNG, propane, butane and condensate storage systems, and 

Teekay/NYK/Mitsui won contract to charter 4 LNG carriers to be built by Samsung. In 

addition, Sonangol ordered 3 LNG carriers to be constructed by Daewoo. 

10



INTSOK priority projects with all major contracts awarded: 

Block 4/05, Gimboa in production with exploration potential – Sonangol P&P 

Gimboa oil field is situated in block 4/05 offshore Angola in 700 m water depth. 

Project participants are operator Sonangol (50% ownership), Statoil (20%), Somoil 

(15%) and Angola Consulting Resources (15%). 

The field, developed with a FPSO and a subsea production system, started 

production in April 2009. Statoil states that the block contains a large area with 

remaining exploration potential. 

Summary of INTSOK priority projects: 

Table 8: INTSOK priority projects – Angola 

Project Name Operator M ain Development Concept Rystad Energy Start-up 

Gimboa Sonangol Floater 2009 

Pazflor Total Subsea 2011 

Angola LNG Chevron Onshore 2012 

Block 15: Kizomba Satellites Phase 1 ExxonM obil Subsea 2013 

CLOV Total Floater 2015 

Block 31 (Palas/Astraea/Juno/Dione) BP Floater 2016 

Block 18 West (Platina/Chumbo) BP Subsea 2016 

Block 14: Negage/Lianza/Lucapa Chevron Floater 2017 

Block 32 (Gindungo-Canela-Gengibre) Total Subsea 2017 

1.7 Other selected upcoming projects 

In addition to the INTSOK priority projects, more than 40 possible upcoming offshore 

projects are expected to come on stream in Angola towards 2020. Below is a non 

exhaustive list of project examples in this period. 

Table 9: Other selected upcoming projects – Angola 

Project Name Operator M ain Development Concept Rystad Energy Start-up 

Kakocha (Block 15) ExxonM obil Subsea 2014 

Reco-Reco (Block 15) ExxonM obil Subsea 2015 

Sangos (Block 15/06) ENI Floater 2015 

Ngoma (Block 15/06) ENI Floater 2015 

M bulumbumba (Block 15) ExxonM obil Subsea 2017 

Tchihumba (Block 15) ExxonM obil Subsea 2017 

Bavuca (Block 15) ExxonM obil Subsea 2017 

Ceres (Block 31) BP Floater 2018 

Hebe (Block 31) BP Subsea 2018 

Titania (Block 31) BP Subsea 2018 

11



2 Angola onshore market 

Onshore Angolan production pales in comparison with its offshore riches. Production 

levels have been hovering above 13.5 kbblpd, but have been slowly declining. 

Production comes from the Congo FS (Total/Sonangol) & Congo FST 

(Total/Sonangol/Chevron) concessions. 





F(Country:Angola;On Off Shore:Onshore) 

C(INTSOK Category:Reservoir and Seismic,Field 

Development,Well,Operations,Non E&P Expenditure) 



Figure 8: Onshore Market by Category – Angola 

Table 10: Onshore Market by Category – Angola 



F(Country:Angola;On Off Shore:Onshore) 


R(INTSOK Category Table:R&S,Field Development,Well,Operations,Non E&P) 



R&S 0 0 0 2 3 2 2 1 0 1 1 

Field Development 3 4 5 7 9 6 6 5 4 17 54 

Well 17 21 26 46 62 39 39 31 23 27 8 

Operations 11 13 17 22 41 18 18 16 53 18 36 

Non E&P 5 5 292 1 411 1 703 2 613 3 171 3 248 1 395 581 746 

Total 36 43 340 1 488 1 819 2 678 3 236 3 301 1 475 644 844 

The onshore market in Angola is dominated by refineries and investments in the 

Angola LNG (Chevron) project. The small E&P market is dominated by well related 

segments and increasing operations spending. The overall market is likely to decline 

when LNG investments drop in 2012 after a peak of USD 3.3 billion in 2011. 

12





;Legend:Custom;GridLinesX:off;GridLinesY:off;LegendX:0;LegendY:0; 

Palette:Default;PaletteText:off) 

F(Country:Angola;On Off Shore:Onshore;INTSOK Category:Reservoir and 

Seismic,Field Development,Well,Operations,Non E&P Expenditure) 

C(INTSOK Operator Segment) 



Figure 9: Onshore Market by Operator Segment – Angola 

Table 11: Onshore Market by Operator Segment – Angola 


Major S(FontSize:6;Format:#,##0) 7 6 1 832 835 1 742 2 300 2 374 965 63 107 

F(Country:Angola;On Off Shore:Onshore;INTSOK Category:Reservoir and Seismic,Field Development,Well,Operations,Non 

NOC E&P Expenditure) 28 35 338 641 949 918 916 916 508 552 648 

INOC C(Year:2004-2014) 0 0 0 1 5 2 1 0 0 1 0 

Other 

R(INTSOK Operator Segment) 

1 1 


Total 36 43 

1 

340 

15 

1 488 

30 

1 819 

17 

2 678 

19 

3 236 

10 

3 301 

1 

1 475 

29 

644 

89 

844 

Chevron dominates the Angolan onshore market with 65% in 2009. Pluspetrol is the 

largest field development focused operator with projects such as Massambala, Coca, 

and Castanha recently discovered or close to sanctioning. 

2.1 Reservoir and Seismic 





F(Country:Angola;On Off Shore:Onshore;INTSOK Category:Reservoir and 

Seismic) 




Figure 10: Onshore Reservoir and Seismic Market – Angola 

Table 12: Onshore Reservoir and Seismic Market – Angola 




F(Country:Angola;On Off Shore:Onshore;INTSOK Category:Reservoir and Seismic) 




R&S 0 0 0 2 3 2 2 1 0 1 1 

Total 0 0 0 2 3 2 2 1 0 1 1 

The onshore Angola seismic market rose to USD 3 million in 2008 before falling to 

USD 2 million in 2009. Activity is expected to remain low towards 2014. 

13



2.2 Field Development 




:Default;PaletteText:off;LegendCols:1;LegendRows:3) 

F(Country:Angola;On Off Shore:Onshore;INTSOK Category:Field 

Development) 




Figure 11: Onshore Field Development Market by Definition – Angola 

Table 13: Onshore Field Development Market by Definition – Angola 


Engineering S(FontSize:6;Format:#,##0) 1 1 2 3 5 3 

F(Country:Angola;On Off Shore:Onshore;INTSOK Category:Field Development) 

PC&I 


0 0 0 0 0 0 

3 

0 

2 

0 

1 

0 

4 

8 

1 

40 

SEP&V R(INTSOK Market Definition 2 Table) 3 4 4 4 3 3 3 3 5 13 

Total 


3 4 5 7 9 6 6 5 4 17 54 

The onshore field development market is dominated by brownfield investment in 

equipment and well related engineering. The only major field development before 

2014 is Pluspetrol’s Castanha. 

2.3 Well 





F(Country:Angola;On Off Shore:Onshore;INTSOK Category:Well) 




Figure 12: Onshore Well Market by Definition – Angola 

Table 14: Onshore Well Market by Definition – Angola 


Rigs S(FontSize:6;Format:#,##0) 

and Drilling 3 4 5 9 11 

F(Country:Angola;On Off Shore:Onshore;INTSOK Category:Well) 

Drilling 


Systems 5 6 8 13 15 

7 

10 

7 

10 

6 

8 

4 

7 

5 

7 

1 

2 

Downhole R(INTSOK and Market Well Definition 9 Table) 10 13 25 36 22 22 16 11 15 5 

Total 


17 21 26 46 62 39 39 31 23 27 8 

The onshore Angola well market rose to USD 62 million in 2008 before falling to USD 

39 million in 2009. The top was driven by exploration activity undertaken by 

Pluspetrol. Activity will remain low towards 2014. 

14



2.4 Operations 





F(Country:Angola;On Off Shore:Onshore;INTSOK Category:Operations) 




Figure 13: Onshore Operations Market by Definition – Angola 

Table 15: Onshore Operations Market by Definition – Angola 



F(Country:Angola;On Off Shore:Onshore;INTSOK Category:Operations) 





Operational Services 4 5 7 8 8 7 6 6 5 7 16 

Maintenance 4 5 7 8 8 6 6 6 5 7 15 

EI&T 1 1 1 1 1 1 1 1 1 1 2 

Logistics 2 2 2 5 15 5 5 3 22 3 2 

Decommissioning 0 0 0 0 8 0 0 0 20 0 0 

Total 11 13 17 22 41 18 18 16 53 18 36 

Operations related spend is dominated by a small number of fields and will remain at 

around USD 20 million with occasional jumps related to field decommissioning work. 

2.5 Non E&P Expenditure 





F(Country:Angola;On Off Shore:Onshore;INTSOK Category:Non E&P 

Expenditure) 




Figure 14: Onshore Non E&P Market by Definition - Angola 

Table 16: Onshore Non E&P Market by Definition - Angola 




F(Country:Angola;On Off Shore:Onshore;INTSOK Category:Non E&P Expenditure) 




Refining and Gas 0 0 292 583 875 875 875 875 430 519 639 

LNG 5 5 0 828 828 1 738 2 296 2 373 965 62 107 

Total 5 5 292 1 411 1 703 2 613 3 171 3 248 1 395 581 746 

The single most dominant onshore project is Angola LNG (Sonangol/Chevron), the 

country’s first LNG export terminal. Targeted start-up for train 1 was 2009, but this has 

slipped with current likely start-up in 2012. Investment levels are currently around 

USD 3.2 billion. Beyond 2011 investment levels will decrease. Further expansion at 

the LNG facility is possible beyond 2014. 

15

INTSOK, Oslo 

Hoffsveien 23, 2. floor 

P.O. Box 631Skøyen 

NO-0214 Oslo, Norway 

Phone: +47 22 06 14 80 

Fax: +47 22 06 14 90 

Email: intsok@intsok.com 

Web: www.intsok.com 

INTSOK, Stavanger 

Prof. Olav Hanssens vei 7A 

P.O. Box 8034 

NO-4068 Stavanger, Norway 

Phone: +47 51 87 48 80 

Fax: +47 51 87 48 81 



INTSOK, Bergen 

Strandgaten 6 

NO-5013 Bergen 

Norway 

Phone: +47 91 35 14 54 



Promoting Norwegian oil and gas capabilities 

in international markets 

Bergen, Oslo and Stavanger, Norway | Luanda, Angola | Perth, Australia | Rio De Janeiro, Brazil | St. John’s, Canada | Beijing, China | New Delhi, INDIA 

| Astana, Kazakhstan | Abu Dhabi, UAE | Mexico City, Mexico | Kuala Lumpur, Malaysia | Moscow, Russia | St. Petersburg, Russia | Houston, USA 

16

INTSOK Annual Market Report (2011-2014) ANGOLA

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