More Angola deep water shows potential

Oil exploration hotspot Angola boasts another swathe of ultradeep waters showing signs of potentially lucrative deposits, data from seismic contractor Western Geophysical issued late Thursday showed.
"All the elements of a major petroleum system exist in the Kwanza basin," Doug
Evans of the firm's exploration and reservoir services group said at a London
conference.
"Overall, this is a highly prospective area," he said of the southerly Kwanza
geological formation or "basin" lying under 2,000 metres of water.
Most of the big finds making Angola one of the world's most exciting
exploration plays have occurred in the more northerly Congo basin, also the site of the country's current production of 780,000 barrels a day (bpd).
Exploration drilling has so far had little success in the Kwanza basin's
shallow waters south of the capital Luanda.
But the industry is awaiting word from untested deep and ultradeep Kwanza
waters further offshore to see if they can come close to matching the likely
potential of the Congo Basin.
Evans was referring to an undemarcated area to the south of blocks 31 to 34,
delineated maritime properties believed to hold oil worth billions of dollars.
Blocks 31 to 33 were the crown jewels of Angola's first ultra deep exploration
round and big oil companies paid Angola a combined $900 million for the right to operate them.
Angola, sub-Saharan Africa's largest oil exporter after Nigeria, will earn
another payment when operatorship and co-venture participation in block 34 is
finalised.
Recent high crude oil prices and concerns over long-term supplies have driven
seismic surveying in deepwater and ultradeep water sites offshore North, East and West Africa.
In June, state oil company Sonangol said Angola would probably become the
continent's second largest producer by raising output to 1.3 million bpd within
six to eight years.
Western Geophysical's clients said they were very interested in the firm's
latest three dimensional data.
"Angola continues to be a hotspot," BP geophysical manager Keith Nunn said after seeing seismic maps. In addition to the latest surveys in Angola, Western Geophysical has also completed maps of the sub-surface offshore Algeria and Yemen, Tanzania and Mozambique and also the Republic of Guinea.
All these surveys have shown signs of potential hydrocarbon deposits in
previously unexplored offshore regions. The Republic of Guinea could be one of the first of these nations to exploit the potential of its underwater fields.
"There is a very strong comparison with what we see in Algeria, which is a very
prolific area," Western Geophysical's Stuart Sweetman said of Guinea's fields.
Western Geophysical said it expected a first round of licences for the Republic
of Guinea's sites to be offered in the near future, though a date has yet to be
decided.
Overall, the firm was enthusiastic about its latest data collected using high-tech seismic surveying equipment.
"The response from our clients was very positive," said Graham Carter, general
manager of its new ventures department. "We are pushing into the frontiers. There are unknowns...but we are optimistic."
Carter also said that the role of firms such as Western Geophysical, a division
of U.S. oil services giant Baker Hughes, was becoming broader.
"With all the cost cutting by oil companies, there are now more opportunities
for seismic contractors to play in acquiring data, but also in interpreting it and assisting oil companies in appraising the potential in the area," Carter added.
However, while seismic surveys may provide maps showing potential sites, Carter
said ultimately, the final test can only come from the drill-bit.