Esso signs PSAs on 3 deepwater blocks with Sonangol

The Angolan national oil company Sonangol and Exxon's Angolan affiliates (Esso) have signed Production Sharing Agreements (PSAs) on three large deepwater blocks.
The three blocks -- identified as numbers 21, 22 and 24 -- each cover about 1.2 mm acres. Water depths of the blocks range from approximately 1300 to 5900 feet (400 to 2040 meters). Esso will operate Block 24, which is the second deepwater block operated by an Exxon affiliate in Angola. Esso currently operates Block 15.

With these signings, Exxon affiliates have PSAs in 6 high-potential deepwater blocks offshore Angola. On two of these blocks -- 15 and 17 -- Exxon and its co-venturers have announced 8 discoveries that represent world-class development opportunities with a recoverable reserves potential in excess of 3 bn boe. 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 the deepwater region were completed and the first competitive tenders were awarded, Exxon has established a major position in the deep water off West Africa, where it is currently the largest multinational deepwater acreage holder. Exxon affiliates have interests in 20 high potential deepwater blocks in Angola, Republic of Congo (Brazzaville), and Nigeria totalling nearly 17 mm 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), operator, 30 %; Esso Exploration and Production Angola (Block 21), 20 %; Amoco Angola Kwanza, 20 %; Sonangol, 20 %; and Shell Development Angola, 10 %.

Block 22:
Texaco, operator, 40 %; Esso Exploration and Production Angola (Block 22), 25 %; Sonangol, 20 %; and BHP Petroleum (Angola 22), 15 %.

Block 24:
Esso Exploration and Production (Block 24), operator, 50 %; Sonangol 20 %; Petronas Carigali Overseas, 15 %; and UMC Angola, a wholly owned subsidiary of Ocean Energy Inc., 15 %.