Press

On Its Own Soil


The country's largest private oil firm, SOMOIL CEO Nelson Pacavira spoke to Africa Energy Series – Angola, about how SOMOIL accounts for a small percentage of Angola's total production through its stakes in Blocks FS and FST.

How has SOMOIL adapted its strategy to the current market conditions?

The sudden drop in crude oil prices in 2014 caused considerable losses in overall revenues for most oil and gas companies, including SOMOIL. It demanded a review of strategy – not only to overcome the crisis, but also to survive in the mid- to long-term. Therefore, given the change in global oil and gas market conditions, the main shareholders of the company decided to start a process of a phased restructuring and redefinition of the company's overall strategy.

In 2016, the strategy was focused on our exploration and production segment, aiming to not only improve its profitability through increased production but also to reinforce its position in the local market by acquiring more valuable assets. With the new strategy approved, new strategic objectives were also defined and the top priorities of the company were increasing reserves and crude oil production, significantly reducing the operating costs and developing local competencies to mitigate the excessive dependence on foreign manpower and services. To meet these objectives in the short- and mid-term, a five-year business plan was generated and approved, with implementation at the beginning of 2018. SOMOIL's primary objectives for the rest of 2019 and 2020, are to arrest production decline, ensure asset integrity, reduce operability cost and increase productivity while ensuring safe operations.

As part of the approved five-year plan, the last year was dedicated to adjusting the organizational structure of SOMOIL, by reinforcing the upstream part of the business with more qualified personnel and contracting more reliable and qualified services. Also, we are identifying new development opportunities within Blocks FS and FST following new seismic acquisition and interpretation, optimizing production performance by executing minor good workovers and improving facilities efficiency on Blocks FS and FST, and keeping Block 2-05 operational while seeking for partners and concessionaire approval for a full block re-development plan.

What is the capacity of national oil companies (NOCs) in Angola and Africa to contribute to economic growth and nation-building?

The capacity of NOCs in Angola is still very limited, mainly because of the very limited access to foreign capital to buy and pay for high-quality services. Nevertheless, the potential in Angola is significant, especially with the government's new approach to the sector that is highly advantageous for the rest of the continent but also considers the specificities of each country in Africa. NOCs should begin to position and expand themselves as more holistic energy companies, maintain a measure presented in the renewable energy sector as SOMOIL has started in solar energy.

IOCs should have a limited but fixed and reserve percentage farm-in option for NOCs with an option for financial carry through the exploration phase. This will facilitate growth and ensure knowledge transfer which, in general, instills a very high demand in NOCs, especially in Africa.



New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site

https://africaoilandpower.com/2019/09/07/on-its-ow...

Exploration and ProductionSOMOILAngolaNOCAfrica Energy SeriesExploration and Production

More items from aydanur


Mozambique: Net Power Exporter

In celebration of the recipient of AOP's ‘Person of the Year Award', H.E. President Felipe Nyusi, we are running content from the Africa Energy Series Report 2020: Mozambique, which highlights Mozambique's gas revolution. H.E. Nyusi will receive the prestigious award at the Mozambique Gas & Power ...

Aydanur Akkurt - Africa Oil & Power


Posted 5 days agoLink > MozambiqueMozambique Gas & PowerMGP2021 +19

Angola’s Proactive Approach to Drive Exploration

In 2020, Angola seeks to drive frontier exploration through its upcoming offshore licensing round in the Kwanza and Congo basins, as well as optimize existing resources through three recent block extensions and phased development of short-cycle satellite fields. Downstream, Angola is spearheading ...

Aydanur Akkurt - Africa Oil & Power


Posted 6 days agoLink > AngolaAngola Oil & GasLuanda +23

Mozambican Oil & Gas Chamber Endorses Mozambique Gas & Power 2021 Event, Unites Mozambique Pro-Gas Alliance

The Mozambique Gas & Power 2021 event gains key endorsement from the Mozambican Oil & Gas Chamber (CPGM) . CPGM joins the Ministry of Mineral Resources and Energy (MIREME) and the African Energy Chamber as leading partners of the March 2021 event. Honoring the leadership of H.E. President of ...

Aydanur Akkurt - Africa Oil & Power


Posted 8 days agoPress > MozambiqueMozambique Gas & PowerMGP2021 +20

Mozambique LNG: Uniting International Financiers

Total's Area 1 Mozambique LNG development has countered the projected slow- down in energy investment during COVID-19 by securing the largest FID in Africa to date. With a total post-FID investment of $20 billion and $14.9 billion in project financing, Mozambique LNG represents the largest foreig ...

Aydanur Akkurt - Africa Oil & Power


Posted 8 days agoLink > MozambiqueMozambique Gas & PowerMGP2021 +21

Mozambique Showcases Mega Gas Potential

Recently selected as Africa Oil & Power's “Person of the Year” for 2020, President Nyusi has been at the helm of Mozambique's energy sector during its many recent successes, establishing natural gas as a means of generating long-term economic diversification, skills development and job creation ac ...

Aydanur Akkurt - Africa Oil & Power


Posted 13 days agoLink > MozambiqueMozambique Gas & PowerMGP2021 +23
All posts from aydanur