Total SA and its joint venture partners have made a final investment decision (FID) on development of the ultradeepwater Kaombo project on Block 32 about 260 km offshore Luanda, Angola, reducing its capital expenditure from $20 billion to $16 billion.
The Kaombo project, in 1,400-1,900 m of water, has a production capacity of 230,000 b/d and estimated reserves of 650 million bbl.
Total plans to develop 6 of the 12 discoveries already made on Block 32. The Gengibre, Gindungo, Caril, Canela, Mostarda, and Louro fields cover an area of 800 sq km in the central and southeast part of the block. Expected start-up is 2017.
Total outlined a development plan including 59 subsea wells, connected through 300 km of subsea lines, to two floating production, storage, and offloading vessels, each with a production capacity of 115,000 b/d. The two FPSOs will be based on conversions of very large crude carriers into production units. Associated gas will be exported to the onshore Angola LNG plant.
More than 14 million man-hr of fabrication and construction will be performed locally in Angolan yards that will be used for equipment fabrication and assembly, Total said.
“With the launch of Kaombo, the upcoming start-up of [Cravo, Lirio, Orquidea and Violeta (CLOV)], and three exploration wells planned in the Kwanza basin this year, Angola remains a priority country for Total,” said Yves-Louis Darricarrere, Total upstream president.
“While continuing our commitment to develop the Angolan oil industry, Total has significantly optimized the project’s design and contracting strategy in recent months. Kaombo illustrates both the group’s capital discipline and objective to reduce capex.”
Total in February sold 15% participating interest in offshore Angola Block 15/06 to Sonangol E&P for $750 million, a move Total made with the intention of focusing investment on core assets, including the development of Kaombo (OGJ Online, Feb. 4, 2014).
Total is operator of Block 32 with 30% interest. Partners are Sonangol P&P 30%, Sonangol Sinopec International 20%, Esso Exploration & Production Angola (Overseas) Ltd. 15%, and Galp Energia 5%.
