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


Tarek El-Molla confirms attendance of 5th GECF Summit of Heads of State and Government in Equatorial Guinea

Egyptian Minister of Petroleum, Tarek El-Molla confirms attendance to 5th GECF Summit of Heads of State and Government in Equatorial Guinea. Equatorial Guinea set to host the 5th GECF Summit of Heads of State and Government for the first time on the African continent. Strengthening and developme ...

Aydanur Akkurt - Africa Oil & Power


Posted 10 days agoPress > EgyptGECFGECFMalabo +4

Angola discloses tender details for oil block concessions

On Tuesday, Angola's National Agency for Oil, Gas, and Biofuels (ANPG) hosted the first of four roadshows in Luanda to highlight the first 10 blocks to be auctioned in 2019. The offshore blocks are located in the Benguela and Namibe basin and will also be presented in Houston, London and Dubai as ...

Aydanur Akkurt - Africa Oil & Power


Posted 11 days agoLink > AngolaLicencing RoundOil +2

Building a prosperous and free Somalia through the Rule of Law

Opinion article by His Excellency Abdirashid Mohamed Ahmed, The Minister of Petroleum & Mineral Resources of The Federal Republic of Somalia As Dwight D. Eisenhower said: “The clearest way to show what the rule of law means to us in everyday life is to recall what has happened when there is no r ...

Aydanur Akkurt - Africa Oil & Power


Posted 11 days agoOpinion > SomaliaLawOil Blocks +5

Time to Make Energy Work for Africa

It is past time that Africa's natural resources benefited Africans; that every African had access to electricity; and that the wealth created by oil and gas would lead to the sustainable development of African economies. The incredible story of Senegal, for example, stands as a roadmap on creatin ...

Aydanur Akkurt - Africa Oil & Power


Posted 12 days agoLink > NigeriaAtlas OrantoPrince Arthur Eze +3

Benin inaugurates 127MW power plant

With a generation capacity of 127 megawatts (MW), the gas engine power plant is set to increase the country's power supply significantly decreasing its dependence on energy imports. “The Maria Gleta power plant increases Benin's capacity for electricity by more than 50 percent – our country now b ...

Aydanur Akkurt - Africa Oil & Power


Posted 12 days agoLink > BeninPower PlantGhana +4
All posts from aydanur