According to Reuters Luanda, Angolan state oil company Sonangol and Exxon Mobil said on Friday that the two companies signed a memorandum of understanding to explore oil in the Namibian basin.
As Africa's second-largest crude oil producer, Angola is facing a sharp decline in production unless it can resume exploration, one of the most exciting offshore oil explorations in the world.
Angola’s national oil company is negotiating a contract with the oil giant for a new block, and Angola plans to hold an auction next year, the first exploration right tender since 2011.
Carlos Saturnino, chairman of the Angolan National Oil Company, said the memorandum paved the way for parties to begin contract negotiations on new oil exploration rights as part of the state-owned company’s strategy to find new oil activities and discover new oil reserves.
Andre Kostelnik, president of ExxonMobil in Angola, said the new exploration sector could be seen as a recovery in the country’s oil activities.
Oil accounts for 95% of Angola's exports, accounting for about 70% of government revenue.