Block 3, Which Includes 3/05 and Two Other Sub-Blocks, Appears to Have Produced Less Than

Source 1:

Block 3, which includes 3/05 and two other sub-blocks, appears to have produced less than 35,225b/d in 2008. Two thirds of the wells in Block 3 were located in 3/05. This suggests that Block 3/05 may have produced the greater part of 35,225b/d in 2008.

Block 3/05 was formerly Block 3/80, operated by Total.[1] It is part of Block 3, which includes three contract areas: 3/05, 3/85 and 3/91. 3/05A is an exploration area carved out of block 3/05. 3/05 has 6 offshore oil fields: Bufalo, Impala, Impala SE, Pacassa, Palanca, and Pambi 3/05. Blocks 3/05 and 3/05A are operated by Sonangol Pesquisa & Producão with 25%. Other participants are China Sonangol International Holding (25%), Ajoco (20%), Eni (12%), SOMOIL (10%), NAFTGAS (4%) and Ina-Naftaplin (4%).

In 2008 Ina-Naftaplin produced 70,158 tonnes of oil in Angola (ie 1,409b/d).[2] This came from 9 fields, all in Block 3. It held 4% in 6 of them and 5% in 3, and received the same share of production.[3] This suggests the three blocks produced a total of 35,225b/d together. Block 3/05a is likely to have produced most of this as it contains two thirds of the area’s fields. This does not contradict Eni’s Angola production of 121,000b/d from 10 blocks, including Block 3/05.

Source 2:

China Sonangol Out to Conquer the World

674 words

24 June 2009

Africa Energy Intelligence

AEIN

607

English

Founded in 2004 to push through several oil projects in Angola and China, China Sonangol International Holding Ltd quickly diversified into other businesses than oil and is now active in Africa, Latin America and South-East Asia. Africa Energy Intelligence takes a closer look at the hidden side of Sino-Angolan cooperation.

China Helps Sonangol to Spread Wings Abroad. Seventy per cent owned by Sonangol and 30% by China’s Beiya International Development Ltd, China Sonangol signed a memorandum of understanding on June 12 with Guinea to acquire offshore acreage. It was the holding company’s first African oil operation outside of Angola, but China Sonangol has already made several acquisitions in Asia and Latin America. And in mid-April, the group tip-toed into Indonesia’s huge Cepu gas field through the back door. The Sino-Angolan concern acquired 4% of the field from the local governments of Java, Bojonegoro, Blora and East Java, which collectively held 10% of Cepu. China Sonangol is to lend USD 200 million to the four governments to enable them to finance their share in the development of Cepu, and will be repaid by output from the field. But Indonesia isn’t the only country where China Sonangol is active. Since 2004 the group has been a partner of Argentina’s state-owned oil company Energia Argentina, with which China Sonangol signed a memorandum of understanding. Apart from oil, the company is active in aviation, controlling 49% of Air Tanzania and it has a fleet of business jets, two Legacy 600s built by Embraer and three Airbus Corporate Jetliners, a derivative of the A-320,

Angolan Oil Bankrolls Foreign Expansion. China Sonangol's money comes from the sale of Angolan crude. The company forms part of a pool of Chinese traders which sold 40,000 bpd of Angolan oil between 2005-2008 to pay back the USD 2 billion that Sonangol borrowed from France's Calyon (AEI 399). In addition, China Sonangol markets part of the output from the offshore blocks 3/05 and 3/05A, of which it controls 30%. The two blocks, which produce a little over 80,000 bpd, encompass Total’s former block 3/80 that was withdrawn from the French group at a low point in relations between France and Angola. China Sonangol has an affiliate in China, China Angola Oil Stock Holding Ltd. which market Angolan crude.

But Also Construction Work in Angola. While oil fuels the international expansion of China Sonagol it also allows the group to conduct numerous projects in Angola itself. Beiya International, the co-shareholder of China Sonangol, set up China International Fund Ltd (CIF) in 2005 with the intention of financing various infrastructure programs in Angola. CIF has already lent USD 2.9 billion to Angola to, among other things, restore the road between Luanda and Lobito (497.5 km) as well as the 1,547 km Benguela and 1,003 km Mocamedes railroads. The infrastructure programs are supervised by Gabinete de Reconstrucao Nacional (GRN) which is run by general Helder Viera Dias, alias Kopelipa, who is Angolan president Jose Eduardo Dos Santoi’s security chief. To help push the projects through, China Sonangol acquired a 10% holding in the Singapore engineering concern OKP Holdings in April of this year. OKP is specialized in building roads and airport runways.

A Mysterious Partner. The Chinese side of ChinaSonangol, Beiya International Development was incorporated in Hong Kong and is run by Xu Jinghua. The company is active only in Angola. But in addition to its partnership with Sonangol, Beiya is associated with Escom, a subsidiary of the Portuguese holding concern Grupo Espirito Santo. The twoform a joint venture named Beiya Escom. The companies are involved in joint projects, notably in Argentina. One of the partners of Beiya International Development in Angola is reportedly Pierson Asia, a firm run by the Franco-Brazilian businessman Pierre Falcone. Now living in Beijing, Falcone is close to the Angolan president.

64211434|XMLExtract_AEM_607.xml

Document AEIN000020090709e56o00001

Matthew Powers

STRATFOR Intern

[1]

[2]

[3] (p.35)