/ 13 May 1999

ANGOLA SELLS AND SELLS ITS OIL

DESPITE a financial crisis provoked by the steep downturn in global oil prices, the Angolan government is expecting to raise some US$1,5-billion this year to help fund its war effort against the rebel movement Unita, financial analysts said on Tuesday. The government last week approved the allocation of drilling licenses to BP Amoco, Elf Aquitaine and Exxon for three blocs in Angola’s oil-rich deep waters which experts believe may hold the largest untapped reserves in the world. The importance for the government is that the oil companies are to make up-front down payments, known as signature bonuses, for the rights. The government is also close to winning a syndicated loan from the Union Bank of Switzerland valued at around US $500-million through mortgaging future oil production.