ERHC Energy Inc (ERHE)

[RUBY1100]

related - Sinopec takes Angola prize

By Upstream staff


Angola has awarded China's state-owned Sinopec the biggest stake in its lucrative offshore Block 18, the Asian giant's latest foray into the resource-rich south-west African country.


Angola's state-run oil company Sonangol said Sinopec won a 40% stake in a relinquished part of Block 18 after proposing a huge $1.1 billion government signature bonus, out of a total investment amounting to over $1.4 billion.

"This process demonstrates maximum transparency," Carlos Saturno, head of concessions at Sonangol, said at a presentation where the award was announced.

Sinopec's victory will be added to the 20% stake it landed earlier this month in deep-water Block 15 after it bid $982 million.

Angola's oil output currently stands at 1.4 million bpd, but this is expected to rise to 2 million bpd by the end of next year.

Sinopec fell short of analysts' expectations on Block 17 after it was beaten by France's Total , whose $670 million signature bonus and $1.04 billion total investment gave it a 40% operating stake, leaving Sinopec with 25.5%.


--------------------------------------------------------------------------------
22 May 2006 13:39 GMT | last updated: 22 May 2006 13:39 GMT