Exxon to Operate Second Angola Deepwater Block and Participate in Two Additional Blocks

Exxon's Angolan affiliates (Esso) and the Angolan state oil company Sonangol, have signed Production Sharing Agreements (PSAs) for three large deepwater blocks off Angola's South Atlantic coast. The three blocks, identified as numbers 21, 22, and 24, each encompass approximately 1.2 million acres in water depths ranging from 1,300 to 5,900 ft (400 to 2,040 meters).

Esso will operate Block 24, which is the second deepwater block to be operated by an Exxon affiliate in Angola. The other is Block 15, which has proven to be a highly prospective area.

The PSA signing brings to six the number of high-potential deepwater blocks off Angola in which Exxon affiliates have PSAs. On two of these blocks—15 and 17—Exxpn and its co-venturers have announced eight discoveries that represent world-class development opportunities with recoverable reserves anticipated to be in excess of 3 billion barrels oil equivalent. An Exxon affiliate is also negotiating a PSA on Angola deepwater Block 25, where it has been awarded a 35% interest.

Since 1991, when initial studies of Angola's deepwater region were completed and the first competitive tenders were awarded, Exxon has established a major position in the deep water off West Africa. It is currently the largest multinational deepwater acreage holder in West Africa, with affiliates holding interest in 20 highly prospective deepwater blocks in Angola, the Republic of Congo, and Nigeria totaling nearly 17 million gross acres.

Under the new agreements for the three Angola blocks, Esso will operate Block 24, in which it has a 50% interest. Exxon affiliates' other interest shares include 20% in Block 21 and 25% in Block 22. Interest owners in each of the blocks include: Block 21: BHP Petroleum (Angola 21) Inc., operator, 30%; Esso Exploration and Production Angola (Block 21) Limited, 20%; Amoco Angola Kwanza B.V., 20%; Sonangol, 20%; and Shell Development Angola B.V., 10%.

Block 22: Texaco, operator, 40%; Esso Exploration and Production Angola (Block 22) Limited, 25%; Sonangol, 20%; and BHP Petroleum (Angola 22) Inc., 15%. Block 24: Esso Exploration and Production (Block 24) Limited, operator, 50%; Sonangol 20%; Petronas Carigali Overseas Sdn. Bhd., a wholly owned subsidiary of Petronas, 15%; and UMC Angola Corporation, a wholly owned subsidiary of Ocean Energy Inc., 15%.