CASE STUDY OF ANGOLA LNG

An Investigation of Oil and Gas Technology Development, Case Study of Angola LNG

Name of the Writer

Name of the Institution

An Investigation of Oil and Gas Technology Development, Case Study of Angola LNG

CHAPTER 2 LITERATURE REVIEW

Background

During the last decades the oil industry and natural gas has become one of the most technologically advanced industries all across the world. The innovations and technology have transformed the industry into a technological leader. Angola is one of the fastest growing economies of the world and after Nigeria it is the second-largest oil producer in sub-Saharan Africa, and the enduring boom that directed the decision of the nation to connect OPEC in the year 2007. A second energy-driven boom has started with the LNG (liquefied natural gas) industry expansion.

In Africa, Angola has emerged as one of the largest crude oil producing African countries in the past decade. Moreover, Angola surpassed Nigeria and became largest producers of oil in 2009, along with the latter undergone from assails on infrastructure of oil in the Niger Delta. The sector of oil plays a significant role in the economy of Angolan, reporting for more than 75 percent of government revenues and more than 95 percent of export revenue, accounted for the International Monetary Fund (Opukri & Ibaba, 2008, pp.173-193).

As Angola become the OPEC (Organization of Petroleum Exporting Countries) member, thereby has to follow the limitations of crude oil production fixed by the association. The target production of crude oil of Angola is presently ranged from 1.52 million barrels to 1.66 million barrels a day. In spite such restrictions, it is predicted that Angola will increase its capacity and production of oil in the short-run because projects of offshore are in line, as well as foreign investment keeps flowing into the industry.

In Angola, both the oil and natural gas production directly linked and is frequently flared or vented, with restricted quantity consumed locally. Developments are in place to capture and sell natural gas for national power generation and export the majority as liquefied natural gas (LNG) by the end of 2012.

Oil and Gas Industry Angola

According to the BP Statistical Review of World Energy accounted that Angola has an oil and gas reserves of about 13.5 billion barrels, while the Oil and Gas Journal publicized in January 2011, had reported oil reserves of about 9.5 billion barrels in Angola. Most of the oil reserves in Angola are situated in blocks of offshore, in fraction as exploration of onshore was restricted as a civil war outcome. Conversely, there are a number of proven onshore reserves in the region near to the northern city of Soyo, and to some extent unstable Cabinda Province.

Angola proven to have 10.9 trillion cubic feet (Tcf) reserves of natural gas as on January 1, 2011, according to the Oil and Gas Journal (OGJ). There is a vital boost from the projected reserves of 2007 of about 2 Tcf. The gross production of natural gas of Angola was roughly 357 billion cubic feet (Bcf) ...