Breaking News

[Angola] Average cost of oil production per barrel rises 12 per cent

The weighted average cost of producing a barrel of oil per block in 2018, excluding abandonment costs, rose 12 percent to $ 7.53 versus $ 6.74 in 2017. The increase in the cost per barrel per block was due to the natural drop in production, especially in blocks 18 and 31, and the fact that most of the blocks in production are in need of constant repair and maintenance interventions.
The report of consolidated accounts of Angolan oil company Sonangol for the 2018 fiscal year indicates that the lowest operating costs were observed in Blocks 32 - USD 1.89 Barrels per block (Bbl) and 17 (USD 4.19 / Bbl).
Block 32, contrary to other concessions, began to be produced only at the beginning of the second half of 2018 and its production infrastructures do not require major interventions.
On the other hand, the lower levels of efficiency were observed in Block 2/05 with a cost of USD 63.65 / Bbl and in the FS Association (USD 37,80 / Bbl) resulting, among other factors, from the low production of blocks .
The total recoverable costs of the blocks in production, up to the third quarter of the year in question, was 41 million 818 thousand and 837 US dollars.
The costs to be recovered are mainly related to costs not recovered in previous years.
Up to the third quarter of 2018, a total of nine million, 535 thousand and 173 US dollars were recovered in the concessions in production, of which 83% corresponds to the blocks with the largest production volume. The highest percentage of costs recovered is relative to development costs.
The Angolan National Fuel Company - Sonangol, is an operator of the oil sector, but until 2018 the company still held the concessionaire functions, currently transferred to the National Agency of Oil, Gas and Biofuels (ANPG).
Angola is the second largest oil producer to the south of Sahra, with daily production of 1.49 million barrels / day, behind Nigeria with 1.7 million barrels / day.

No comments