Luanda – National Fuel Society of Angola (Sonangol) decided to give up production operations in two oil fields in Iraq and other services in Venezuela, alleging high risks and difficulties of access.
Sonangol CEO, Gaspar Martins, announced so on Friday, but he would not reveal the investments made in both countries.
“Whatever has to be refunded will be refunded from what was invested, taking into account the operating conditions”, Gaspar Martins told a press conference to mark the 47th anniversary of the national oil company.
According to CEO, even in logistical terms there are also difficulties operating in those locations and “as a result of what happened we decided to leave”.
This is exploration in the Qiayrah field, in northern Iraq, where production has reached 35,000 barrels/day (KPD), according to data shared by the national oil company, in 2021, and in the onshore Block (land) in Najmah, near Mosul, hitherto affected by armed conflicts.
In this country, Sonangol signed, with the Iranian Government (in 2009), two contracts with risk, in which the operator is paid according to production.
In Venezuela, under an oil exploration ban (embargo), the Angolan oil company also gives up the activation and maintenance of wells and fields.
To oil and gas specialist José Oliveira, Sonangol’s decision was well made , for whom “in my point of view Sonangol should not have even gone to Iraq and Venezuela”.
According to the specialist, who was speaking to ANGOP, on the sidelines of the aforementioned press conference, the idea of expanding the national oil company to these countries “was not good”.
In the case of Iraq, he suggests that Sonangol “should not leave hastily ”, as it needs to try to recover the investments made in that country.
“…Although it is producing, the situation is very complicated, but I believe that there will be companies interested in acquiring Sonangol’s interests in Iraq”.
The specialist fears that the investment made will be recovered in full, but due to the increase in the price of a barrel of oil on the international market, he believes that almost the entire amount may be recovered.
In the case of Venezuela, he said that there will not be much difficulty in leaving, since investments are very few and “even if there is something to lose, the company should not lose too much time for this exit”.
Sonangol has operations in the countries such as Cuba, where exploration work are in progress, Brazil, Sao Tome and Principe.
Source: Angola Press News Agency