Things Hotting Up, page-98

The price Eni paid for one block and 1.5bln barrel potential, just north of our blocks is incredible, compared to our m/cap.

6 Dec 2018 23:00 GMT
When Upstream broke the news in April 2006 that Italy's Eni had offered a $906 million signature bonus to secure Block 15/06 in Angola’s first licensing round, it stunned the industry, writes Iain Esau.

At the time, this was said to be the world’s highest ever signature bonus.

Eni also offered a $1.2 billion work programme covering up to 11 wells, targeting potential resources of 1.5 billion barrels of oil.

Despite these raised eyebrows, Eni, 12 years later, looks well on the way to recouping its spending on the block.

It is currently producing about 150,000 barrels per day of oil from two floating production, storage and offloading vessels — the East and West Hub projects. West Hub came online at the end of 2014 via the N’Goma FPSO, which will soon host production from six fields — Sangos, Cinguvu, Mpungi, Mpungi North, Ochigufu and Vandumbu.

East Hub started up early last year, with the Cabaca South East discovery tied back to the Armada Olombendo FPSO.

https://www.upstreamonline.com/hardcopy/1648254/italian-operator-reaps-riches-from-angolas-block-1506