Exxon start production from Angola subsea fields Kizomba C Saxi and BatuqueExxon Mobil Corporation (NYSE:XOM) announced today that its subsidiary, Esso Exploration Angola (Block 15) Limited (Esso Angola), has started production from the Saxi and Batuque fields as part of the development progression of the Kizomba C project.
Combined with a third Kizomba C field, Mondo, which came on stream in January, the project is anticipated to reach a total production rate of 200,000 barrels of oil per day later this year. The Kizomba C development is designed to produce a total of approximately 600 million barrels of oil over the life of the three producing fields, which are located approximately 90 miles (145 kilometers) off the coast of Angola in water depths of nearly 2,400 feet (800 meters).
The Kizomba C development includes two floating production, storage, and offloading (FPSO) vessels and 36 subsea wells, making it the largest subsea development operated by an ExxonMobil affiliate worldwide. The twin FPSO vessels are the fourth and fifth production hubs on Block 15, following Xikomba in 2003, Kizomba A in 2004, and Kizomba B in 2005. Total Block 15 production is expected to total approximately 700,000 barrels a day when the Saxi and Batuque fields reach peak production.
"This is another example of integrating ExxonMobil’s project management capabilities with developing Angolan businesses and suppliers to deliver exceptional value," said Mark Albers, senior vice president of Exxon Mobil Corporation. "The timely and cost-efficient development of this resource provides additional production to help meet the world’s growing energy demand. Working closely with Sonangol, we have reached another milestone in developing Angola’s significant petroleum resources in a manner that maximizes the value of the resource for Angola, co-venturers, and our shareholders."
Nearly $1.5 billion has been spent on local goods and services for Kizomba C, including contracts for in-country fabrication, logistics support, and training and development of Angolan personnel. Angolan participation in the project has increased significantly over time as local companies, working with ExxonMobil and Esso Angola, have developed their capabilities to perform the work required for such complex projects.
The Saxi and Batuque start-up follow other ExxonMobil projects which started producing in 2008: Kizomba C Mondo (Angola), Volve (Norway), Starling (UK), ACG Phase 3 (Azerbaijan), and East Area Natural Gas Liquids II (Nigeria).
With global energy demand growing, and new supplies increasingly found far from the world’s major consuming nations, Kizomba C and these other new projects are vital additions to an increasingly interdependent global energy supply network.
In addition to Esso Angola (operator, 40 percent), other co-venturers in Block 15 are BP Exploration (Angola) Limited (26.67 percent), ENI Angola Exploration B.V. (20 percent) and Statoil Angola Block 15 A.S. (13.33 percent). Sonangol is the Concessionaire.