LUANDA, Jan. 8 (Xinhua) -- Angola, the second biggest oil producer after Nigeria in sub-Saharan Africa, continued to boast of a high crude oil production in 2005, representing 90 percent of the country's exports, 50 percent of the Gross Domestic Product (GDP) and 80 percent of its tax revenues.

    According to Angolan Petroleum Minister Desiderio Costa recently, the country produces over 1.3 million barrels per day, agrowth reached since August 2005, thanks to the oil exploration onthe "Kizomba B" Platform in offshore block 15, and on the Bloc Zero.

    He said 22 new wells were drilled in 2005 and Kizomba-B is now pumping 200,000 barrels per day.

    Of five new wells being developed, four lie in ultra-deepwater Block 31, operated by British Petroleum with a 26.6 percent stake.Esso Exploration and Production Angola (25 percent), Sonangol (20 percent) and Statoil (13 percent) are the other main stakeholders in the venture.

    Oil production in the southern African country has been increasing since 1980 and the production exceeds 700,000 barrels per day every year since 1998. The reserves of Angolan oil are estimated at 12.4 billion barrels.

    In the implementation of projects for 2005, the Angolan oil sector was progressing with the projects of "Sanha Condensed" (Block Zero) and Benguela-Belize (Block 14), which have already passed from developing stage to production phase.

    Mainly linked to offshore, the production of the Angolan oil has currently 35 blocs on the Atlantic ocean in three areas, namely less deep waters, deep and ultra deep waters.

    ECONOMIC ENGINE

    In 2005, the Angolan oil sector entered into an important stage,as the oil has reached 65 U.S. dollars per barrel in the international market, bringing about favorable results for the country's economy.

    One of the results is that the dynamic of the oil price in the world market did not allow a deficit in the State Budget which was foreseen at the beginning of the year to happen, bringing the country, for the first time in 30 years, a budget surplus.

    Angola plans to increase its crude oil production by around 50 percent by 2008. Production will be increased to 2 million barrels per day from 1.3 million, according to an official of the Angolan ministry's Licensing and Exploration Department recently.

    Although Angola pumps about 1.3 million barrels of oil per day,Angola currently only has one obsolete refinery near the capital Luanda with a capacity of 40,000 barrels daily.

    Therefore, the southern African country is also undertaking efforts to build refinery with its second oil refinery project in the port city of Lobito expected to be completed by 2010 as new investors have pledged to fund the delayed project from next year.

    The new refinery is being built by Samsung of South Korea undera deal signed in 2000 and will produce enough fuel to satisfy Angola's domestic demand.

    Now, Angola holds the current chairmanship of the African Petroleum Producers Association (APPA), and it will host a ministerial summit of APPA in March 2006, according to government officials. Enditem