ANPG and operators outline strategy to mitigate decline of oil output

The National Oil, Gas and Biofuels Agency (ANPG) and oil operators have outlined a plan to reduce unplanned shutdowns, with the aim to mitigate oil output decline, the ANPG CEO Paulino Jerónimo has said.

The ANPG CEO said the reduction of unplanned shutdowns will be done on a preventive improvement basis.

The plan will focus on the production of additional resources in mature fields, Jeronimo said during an interview to Angola Public Television (TPA).

In this case, he added, agreements have been signed between 2019 and 2020 with oil companies for the development of fields.

“This will allow for stability in production,” Jeronimo said, stressing that production today is not far from stabilization compared to 2021, 2022 and with what is expected in 2023, which leads to a certain balance.

Jerónimo said that the decline in Angola’s crude oil production has been relatively soft from 2008 to date, recording around 1.1 million barrels per day.

The official pointed to the non-permanent launch of tenders for new blocks as the cause of the decline.

In 20 years, or from 1999 to 2019, four tenders were held, with the fourth being held by ANPG in 2019.

“This means that there has been a big timespan with the holding of these bids,” Jeronimo said.

As an example, he said that the ANPG has existed for four years and is currently holding its fourth bidding, reiterating that these bids should be permanent so that in case of success, there can be production and reserves be discovered and replaced.

Another problem that Paulino Jerónimo believes has to be solved is the issue of the marginal fields that had been discovered over the last 20 to 30 years, but are economically unviable in light of the existing contracts.

Source: Angola Press News Agency (APNA)