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INTERVIEW-UPDATE 1-Giant discoveries possible off Angola-Statoil

Published 01/26/2011, 11:09 AM
Updated 01/26/2011, 11:12 AM

* Sees potential for 1 billion barrels in new awarded blocks

* Final deal with Sonangol seen signed in May

* Company may announce 1-2 worldwide exploration deals in Q2

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By Gwladys Fouche

OSLO, Jan 26 (Reuters) - Norway's Statoil sees potential for giant discoveries of a billion barrels of oil in one or more of the Angolan ultra-deep water blocks, known as pre-salt blocks, in which it gained concessions this week.

Angola, which rivals Nigeria as the top oil producer in Africa, awarded concessions on Monday to major companies across 11 blocks. Oil and gas producer Statoil expects to operate two concessions and participate in three others.

"One or more of the blocks has one-billion-barrels-of-oil potential," Tim Dodson, Statoil's head of exploration, told Reuters on Wednesday in an interview. "We have the potential to make giant discoveries."

Dodson said he hopes Statoil will drill its first exploration well in one of the new blocks within two years.

The Norwegian firm said it expected to sign the final deal about the concessions with Angola's state-owned oil firm Sonangol in May, after which it would disclose the value of the investments it had made in the ultra-deep water blocks.

Statoil said it was too early to say when production in the blocks could start.

It said the area appeared as promising as the ultra-deep water projects on the other side of the Atlantic Ocean from Angola, in Brazil.

Angola is key to Statoil's growth as it is the largest contributor to the firm's production outside its home base of Norway, yielding 37 percent of its international output.

NEW EXPLORATION DEALS POSSIBLE

Statoil, Europe's second-largest gas exporter, must find new areas to explore as production off Norway is fast declining and the Nordic country recently cut its resource estimates by 4.4 billion barrels.

The firm said it is maintaining its 2012 output target, raising eyebrowns among some analysts, and that future growth would come outside Norway.

Dodson said Statoil may imminently announce one or two deals over acquiring new exploration acreage worldwide.

"I would not be surprised if we are ready to disclose one other deal, maybe two, probably in the second quarter... We are making good progress." (Editing by Anthony Barker)

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