Total announced that Qatar Petroleum International (QPI) is now a shareholder of Total E&P Congo, holding 15% of its capital. The news follows a framework agreement that was previously signed in May. The US$1.6 billion increase of Total E&P Congo’s capital will consolidate its financial capacity at a time when it is progressing the development of the Moho Nord deep offshore project, the French player said.
“The conclusion of this agreement, which is an important milestone, builds on Total’s already well-established partnership with Qatar and at the same time strengthens our commitment to the development of the Congolese petroleum industry,” commented Christophe de Margerie, Chairman and CEO of Total.
Total E&P Congo, established in the country in 1968, operates 10 fields in the Republic of Congo, accounting for nearly 60% of national output. Total E&P Congo’s equity production averaged 113,000 boe/d in 2012.
Total announced in March a final investment decision in Moho Nord, which consists of the Moho-Bilondo Phase 1bis and Moho Nord projects. First oil is expected in 2015, with output reaching 140,000 boe/d in 2017. The joint development represents an investment of US$10 billion. Moho Phase 1bis development is a brownfield development consisting of tie-backs to the existing deepwater Alima floating production unit (FPU) and the shallow-water N’Kossa platform.
Located approximately 75km from Pointe-Noire and 25km west of N’Kossa in water depths ranging from 450m-1200m, the Moho Nord project will target additional reserves in the southern part of the license (Phase 1bis) and new reserves in the northern part (Moho Nord). The additional reserves are estimated at approximately 485mmboe.
Since the investment decision, Total has awarded numerous contracts for the Moho Nord development. Notably, Technip, which will provide project management, detail engineering, procurement and supply for the modifications of the Alima FPU, with two new subsea tie-backs. Aker Solutions will provide the development's subsea production system, and Hyundai Heavy Industries will construct and commission the FPU and newbuild tension leg platform (TLP). Strainstall, a James Fisher and Sons subsidiary, announced last month that they will provide a mooring monitoring system for the development's TLP.
Total operates the Moho Bilondo license with a 53.5% stake. Its partners include Chevron (31.5%) and Societe Nationale des Petroles du Congo (15%).