Kerr-McGee, Devon to partner off Angola

Kerr-McGee Angola Ltd., a wholly owned affiliate of Oklahoma City-based Kerr-McGee Oil & Gas Corp., said May 23 it has signed an agreement with Angola’s national petroleum company, Sonangol, to explore for hydrocarbons on block 10 offshore Angola.

The agreement gives Kerr-McGee a 25 percent contract interest in block 10, which is operated by Devon Energy Corp. with a 35 percent contract interest. Sonangol and affiliates retain a 40 percent contract interest.

“Obtaining interest in this offshore Angola block is consistent with our strategy of pursuing high-potential exploration opportunities in proven world-class petroleum provinces,” said Dave Hager, Kerr-McGee senior vice president responsible for oil and gas exploration and production.

Hager said Kerr-McGee used the strategy for entry positions in China’s Bohai Bay, the Brazilian Campos and Espírito Santo basins, and the North Slope of Alaska.

“We believe the Benguela basin is an under-explored basin with exciting hydrocarbon potential.” An extensive 3-D seismic program over the majority of the block has identified two primary prospects, both of which “appear to have the potential to be standalone developments if successful,” Hager said.

The block is offshore the town of Lobito and extends from the coastline to 30 miles offshore, covering approximately 1.2 million acres with water depths extending to approximately 3,300 feet. Kerr-McGee said it anticipates drilling one to two wells on block 10 this year.

“We appreciate the cooperation of Sonangol and look forward to another deepwater partnership with Devon,” said Hager.

—Petroleum News