Government slows oil development

Angola is taking steps to slow oil output to safeguard reserves for future generations, the ‘Financial Times’ reported on Thursday. Angolan oil minister Botelho de Vasconcelos made the announcement earlier this month. Angola may be taking note of nearby Gabon, whose 5,000 barrels a day output has fallen 25 percent in three years as old wells have run dry. The announcement about delays is not all that is reportedly worrying foreign oil companies. Sonangol - the joint venture between the Angolan state oil concern and Stolt Offshore is seeking a better deal on 25 large deep-water discoveries. When the contracts were signed in the mid-1990s this was virgin territory, and the higher exploration risk meant easier terms for foreign operators signing production sharing contracts (PSCs). Now Sonangol wants to re-negotiate some of the deals. These and other factors, such as talks over how large an area around discoveries companies will be allowed to develop, add to delays to projects like TotalFina Elf’s giant Dalia field, which has been awaiting approval for the next development for more than six months. National output at 750,000 to 760,000 barrels a day this year is unlikely to rise in 2001.