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US oil giant kicks off production at South African offshore project

09th July 2012

ExxonMobil jumpstarts production from Angola’s Kizomba Satellites project

US oil giant kicks off production at South African offshore project
Kizomba fields have an estimated 250 million oil barrels production potential

A US oil giant has started offshore oil production in Angola, South Africa. ExxonMobil’s subsidiary Esso Exploration Angola (Block 15) has began oil production at the Kizomba Satellites Phase 1 project offshore Angola, the US oil giant has announced.

Phase 1 was initially launched in 2008, including the development of two satellite projects, Clochas and Macavola, located 150km off the Angolan coast at water depths of 4,500 feet.

Current estimates place the total recovery resource potential at approximately 250 million barrels from both the Clochas and Macavola fields, at a rate of 100,000 bpd.
18 wells are expected to be developed under Phase 1, connected to the current Kizomba A and Kizomba B floating production storage and offloading (FPSO) vessels via subsea tie-back systems. These will maximise the life and output of existing oil and gas production while decreasing the drilling costs, making it unnecessary for an additional FPSO vessel to be used.

"This project combines ExxonMobil's project management expertise with local suppliers and businesses to maximise the value of Angola's significant petroleum resources," said president of ExxonMobil Development Company Neil Duffin.

Since the onset of the Kizomba Satellites project in 2008, high capital has been directed towards Angola’s local resources. An estimated USD 1.5bn have been invested in local goods and services, including contracts for fabrication, logistics support, as well as in training local force.

One of the first deepwater drilling concessions that Angola’s state oil company Sonangol granted, the Kizomba field, sits on Block 15 and was awarded to ExxonMobil in 1994. Since then, a total of 5 billion barrels of proven reserves have been discovered, amounting to more than a third of Angola’s 2011 proven reserves.

Stockhouse recently included Angola in its list of African countries fast becoming ‘the flavour of choice in 2012’ in terms of oil and gas exploration and investment.
Along with Esso Angola, which currently holds a 40 per cent stake over Block 15, other stakeholders include BP Exploration (Angola) at 26.67 per cent, Eni Exploration Angola BV at 20 per cent and Statoil Angola Block 15 AS 13.33 per cent.


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