ANGOLA - Sonangol E&P Operations.

With the establishment of Pesquisa e Producao (P&P) as an oil E&P company in 1992, Sonangol foresees a rapid increase in its oil production. It will begin producing natural gas in 2008.

Currently P&P produces 12,000 b/d on Block 3 which is in shallow waters. P&P has taken on a more challenging venture and now has an oil E&P lease partnership in ultra-deep waters on Block 34, where a field is to be developed and is estimated able to produce about 200,000 b/d by 2009. The 50,000 b/d Jimbao project, operated by PP, could start up as early as December 2007.

As P&P grew as a company and gained experience in the oil industry, Sonangol Group established the subsidiary Sonangol SGPS as a drilling firms to support P&P. They also made a joint-venture with SBM Production to create Sonasing whose mission is to prepare and store crude oil for export.

As part of its expansion beyond Angola, Sonangol has an oil E&P partnership in the Republic of Gabon's Kiarsseny Marin Block - an area of about 5,442 sq km. For this venture Sonangol is a shareholder with 10% of the profits. Other companies in the group are Tullow Oil from Ireland and Addax Petroleum whose headquarters are in Geneva, Switzerland.

On the African continent Sonangol has maintained business co-operation with oil producing countries in the Gulf of Guinea - Gabon, Equatorial Guinea, Nigeria and Sao Tome and Principe. The state company says these partnerships have "greatly contributed to the development of Angola's' oil industry".

Sonangol in 2004 established a joint venture (JV) which the Chinese company Baya International to invest up to $5 bn in offshore Argentina. But little has come of this so far.

Sonangol-Sinopec International (SSI) seems to be a more serious JV which is to operate in Angola and abroad. (See Who's Who In Gas Market Trends).