Sonangol announces pre-salt find

LUANDA, June 22, 2016 – The discovery of additional gas reserves in the offshore Kwanza Basin have been deemed commercial, Angola’s Sonangol announced on Wednesday.

The Zalophus-1 exploration well hit a payzone in Block 20/11, operated by US company Cobalt. Drilled in 1,830 m of water, the well was drilled to a total depth of 5,210 m. The discovery concerns a 44-m thick column of both gas and condensate. The hydrocarbons discovery made in Block 20/11, in which Sonangol and BP hold 30% stakes each, is estimated at 813 million boe, bringing reserves figures for the block to 313 million barrels of condensate and 79.3 bcm (2.8 tcf) of natural gas.

In its statement on Wednesday, Sonangol said it would be engaging with the various stakeholders for discussions on the development and monetisation of the resources, stressing it would work with the government to establish the necessary legislation and regulatory frameworks.

In August 2015, Cobalt agreed to sell its 40% stake in block 20/11 to Sonangol. The sale is still pending, awaiting government approval. If not finalised before August 22, 2016, it will be cancelled.

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