Total eyes new production hub offshore Angola

Paris, December 17 - Neftegaz.RU. French oil giant Total has acquired interests in 2 new licenses offshore Angola in view of developing a new production hub. In addition, Total has extended all Block 17 production licenses until 2045.

Total said it had signed a sale and purchase agreement with state-owned Sonangol of Angola to acquire interests in Blocks 20/11 and 21/09 in the Kwanza Basin, offshore Luanda.

Subject to the approvals of the competent authorities and partners, the group will hold a 50% working interest, alongside Sonangol (20%) and BP (30%), in Block 20/11, located in the central Kwanza Basin in water depths ranging from 300 to 1,700 meters.

In addition, the group will hold an 80% working interest alongside Sonangol (20%) in Block 21/09, located in the south-central Kwanza Basin in water depths ranging from 1,600 to 1,800 meters.

The wells drilled so far in the 2 blocks have produced 4 discoveries — Cameia, Mavinga, Bicuar and Golfinho — and Total and its partners will seek to unlock the value of these prospects by creating a development hub. The group has also committed to explore for additional potential resources in the blocks.

As part of the agreement, Total will become operator of the development of the 2 licenses before putting in place an operating company together with Sonangol 3 years after the production start-up.

As per the transaction terms, Total will pay to Sonangol $400 million at closing, to which will be added $100 million at FID and some additional payments along the life of the project depending on production and crude oil price for a maximum cumulative amount capped at $250 million.

“We are very pleased to demonstrate once again our pioneer spirit and our commitment to continue developing Angola’s energy sector by becoming the first company to undertake a development in the Kwanza Basin,” stated Patrick Pouyanné, Chairman and CEO of Total.