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OIL AND GAS
Angola's potential 'enormous,' U.S. Secretary of State Kerry says
by Daniel J. Graeber
Luanda, Angola (UPI) May 5, 2013


Auction for Egyptian energy blocks set for July
Cairo (UPI) May 5, 2013 - The state-owned natural gas company in Egypt announced it extended a deadline for bids to explore eight license areas to July.

State-owned Egyptian Natural Gas Holding Corp. announced Sunday nearly two dozen licenses would be put on the auction block in July, rather than in May when originally planned.

The company offered no reason for the extension.

Energy companies have been reluctant to invest in Egypt since the 2011 revolution. Though staying on as the operator, U.S. energy explorer Apache Corp. last year sold a 33 percent share in its oil and gas business in Egypt to Sinopec, known formally as China National Petroleum Corp.

Last week, British company BG Group said it had questions about the durability of its Egyptian operations because the Egyptian government was taking on more natural gas than expected.

Egyptian militants last year targeted vital gas infrastructure in the Sinai Peninsula and the country's military has since ramped up its patrols offshore to protect key transit routes in the Suez Canal.

Some of the biggest energy companies in the world are in Angola to the benefit of the nation's economy, U.S. Secretary of State John Kerry said.

Kerry arrived Sunday in Angola during his tour of African nations, and met there with representatives from Chevron, Exxon Mobil and ConocoPhillips to hear their energy strategies in the country.

Chevron, a new player in the Angolan energy sector, has already created more than 3,000 jobs in the country, the secretary said.

"We're standing in a place of enormous economic activity with great promise for future economic growth and development," he said in a statement.

Last month, French energy company Total said it would invest $16 billion in development the Kaombo oil project off the Angolan coast.

The field, which has an estimated 650 million barrels of reserves, should produce 230,000 barrels of oil per day for Angola once operations begin.

Angola is a member of the Organization of Petroleum Exporting Countries. It has 9 billion barrels of proven crude oil reserves and produces on average 1.7 million bpd.

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