SIPC Angola Focuses on Profitability

For SIPC Angola it has always been a priority to create the best value. By means of efficient oilfield development and orderly production replacement, more resources were developed and produced.

To date, fields like GTP in Block B18, PSVM field of Block B31 are producing, and others like PCC in Block B18, 2-Hub in Block 31, Block 1506 East Area, and Kaombo in Block B32 are  coming on stream. SIPC Angola’s assets contain tremendous reserves as well as resources, yet developing them from deepwater requires huge capital investment and lengthy construction periods. Escalating construction cost caused by the increasing marine engineering equipment and service price is pushing development budget times higher.

Counter-measures were taken to cope with this situation. Through proactive communication with operators, SIPC Angola helped optimize and implement individual block development programs, ensuring sound economic performance of each projects. It also urged operators to negotiate with the Angolan government for better terms on cost recovery and fiscal regime, aiming at earlier production and revenues. The Development Program of Block B1506 East Area was initiated in the beginning of 2011. First oil is expected in November 2016 with a production life of 15 years. In order to formulate  the Program, SSI organized two technical teams to study DSP documents for all phases, and provides technical and economic advice to the operator.

The Development Program for Block 32 Kaombo has designed a development model with two separate FPSOs. According to the Program, 59 wells will be drilled to produce for 20 years, and they will be supported by water injection and riser gas lift.

SSI has been very collaborative to the operators when shareholders reviewed and approved development programs for the above two blocks, which will begin massive development in 2014. Once completed, they will provide strong support for future production replacement of SIPC Angola.

Information source: 
2014-04-04