Angola: New gas consortium invests $2B, begins production in 2022

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Angola: New gas consortium invests $2B, begins production in 2022

8:52 CAT | 29 Oct 2019

in file CoM

The new gas consortium that joins Sonangol with multinationals BP, Chevron, Total and Eni is to start production in 2022, the chairman of the National Oil, Gas and Biofuels Agency (ANPG) said on Monday in Luanda.

Paulino Jerónimo, speaking at the signing ceremony of the agreement on the development of non-associated gas with the members of the consortium, noted that the project, an investment of $2 billion (€1.8 billion), would benefit the Angolan economy by allowing the continuous supply of gas to Angola LNG and, consequently, the supply of gas to the combined cycle of Soyo and to a future fertilizer plant, which the Angolan government wants to build with Russian support.

He added that it will create jobs, as the construction of the project will be carried out by local companies.

The head of ANPG said that the negotiations with the oil companies lasted around ten months (between January and October).

The constitution of the consortium was made by invitation and involved a direct negotiation with the companies, anticipating the foreseeable decline in the supply of gas to the Angola LNG Plant from 2022.

The agreement provides for cost-sharing proportional to the participation of each undertaking.

Under the terms of the agreement, the consortium may explore, develop and produce hydrocarbons in the contract area (blocks 1,2, 3 and 14/15), this being the beginning of the implementation of the executive’s strategy aimed at encouraging the production of natural gas.