Total eyes new production hub as it acquires interests offshore Angola
Total SA has agreed to acquire interests in Blocks 20/11 and 21/09 in the Kwanza basin, offshore Luanda from state-owned Sonangol of Angola. Wells drilled so far in the two blocks have produced four discoveries—Cameia, Mavinga, Bicuar, and Golfinho. With its partners, Total plans to create a development hub. The group also has committed to explore for additional potential resources in the blocks.
Subject to the approvals of authorities and partners, Total will hold a 50% working interest, alongside Sonangol, 20%, and BP, 30%, in Block 20/11 in the central Kwanza basin in water depths of 300-1,700 m; as well as an 80% working interest alongside Sonangol, 20%, in Block 21/09 in the south-central Kwanza basin in water depths of 1,600-1,800 m.
Total will become operator of the development of the two licenses before putting in place an operating company together with Sonangol 3 years after the production start-up.
Total will pay to Sonangol $400 million at closing. An additional $100 million will be paid at final investment decision. Additional payments will be made along the life of the project depending on production and crude oil price for a maximum cumulative amount capped at $250 million.
Total has been present in Angola since 1953. The company’s equity production averaged 211,000 boe/d in 2018 from operated blocks 17 and 32, and from non-operated assets 0, 14, 14K, and Angola LNG.
Total also operates Block 17/06 in the lower Congo basin, Block 16 (site of the Chissonga discovery), which are both in the development phase, and Block 48 in the emerging ultra-deep offshore still in the exploration phase.