CNR Takes Stake in Block 16 Offshore Angola
Canadian Natural Resources Limited has entered into a Production Sharing Agreement for deepwater Block 16 with Sonangol EP.
The 1,219,831 acre block is located 120 kilometers offshore in water depths ranging from 300 meters to 1,500 meters. The block is offset by Block 15, 17 and 31, all of which have had recent major discoveries. Canadian Natural will operate Block 16 and retain a 50% working interest. Other partners include Odebrecht Oil and Gas Angola Limited (30% working interest), and Sonangol EP (20% working interest). The PSA is effective September 1, 2002 for an initial four-year Exploration Phase.
Offshore deepwater Angola is one of the most prolific areas in the world for new light oil discoveries. Block 16 is situated in a geologically favorable position and has tremendous exploration potential, providing Canadian Natural with an exciting new growth area for light oil production. Canadian Natural will operate Block 16 with a high working interest, consistent with our operating philosophy.
In commenting on these developments, Canadian Natural's Chairman Allan Markin stated, "We are very excited about obtaining a Production Sharing Agreement on Block 16. We have interpreted the 3-D seismic data for the block and have selected two locations for drilling sometime over the next two years (2003, 2004). We believe the targets selected to date, based on our geological interpretation and 3-D seismic, are significant world-class prospects. We are also pleased to continue our strong business relationship with Sonangol and our commitment to the people of Angola, with whom we have had a presence for over 10 years. This new block provides CNR with the opportunity to increase and develop our Angolan staff and provide continued support to the social development of Angola."