In Angola 2007/2008 - (Page 24) OIL LNG Production on the Horizon Oil & Gas Production in Angola The oil and gas industry is currently the most significant contributor to Angola’s economy. To date, the focus of industry activity has been on the production of oil. Angola is the second largest producer of oil in sub-Saharan Africa, with one million barrels produced per day and a projected increase in production to more than two million barrels per day by 2008. An estimated fifty significant new deepwater discoveries in Blocks 14, 15, 17, and 18 are expected to come on stream in the next five to ten years. These four blocks are estimated to contain more than ten billion barrels of recoverable oil. As a world-class hydrocarbon country, Angola’s role as a producer and worldwide supplier is expected to increase in the future through plans to make use of its extensive reserves of natural gas. In the absence of a sufficiently large domestic market for gas, Angola is seeking a large-scale opportunity to commercialize associated gas from developments for oil and LNG production. A second growth area is to commercialize non-associated gas, which will ultimately take the form of LNG, from fields that have already been discovered in Angola. Officials consider the opportunity to produce Liquefied Natural Gas (LNG) to be of national importance. As the cornerstone of a plan to commercialize and develop the country’s natural resources, the production of LNG will also improve living conditions and decrease health risks through the reduction of gas flaring. To turn this opportunity into reality, the Angola LNG Project was formed, a joint project involving the following companies: • Sonangol 36.4% • Chevron 36.4% • BP 13.6% • Total 13.6% With Sonangol and Chevron serving as co-project leaders, the LNG project will facilitate the increased production of Angola's abundant oil and gas reserves. This increased production will serve as a catalyst for the country's reconstruction and growth by supplying clean fuel and valuable export products, introducing a new technology, and providing natural gas for local industrial development. It will reduce gas flaring in the offshore blocks, which can cause health risks, property damage, and greenhouse gas emissions. What is LNG? When natural gas is cooled to a temperature of approximately -260°F (-160°C) at atmospheric pressure, it condenses to a liquid called liquefied natural gas (LNG). One volume of this liquid takes up approximately 1/600th the volume of natural gas at a stove burner. LNG is only about 45% the density of water. LNG is odorless, colorless, non-corrosive, and non-toxic. Natural gas is composed primarily of methane (typically at least 90%), but may also contain ethane, propane, and heavier hydrocarbons. Small quantities of nitrogen, oxygen, carbon dioxide, sulfur compounds, and water may also be found in natural gas. The liquefaction process removes the oxygen, carbon dioxide, sulfur compounds, and water. The Angola LNG Project The Angola LNG Project involves collecting natural gas from offshore oil and gas production facilities and delivering it through pipelines to onshore LNG process facilities, which will be located in the Soyo area of the Zaire Province. Part of the onshore facilities will be located inside the boundaries of the existing Kwanda Base. The additional facilities will come 24
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