Energy company Total announced Monday it has acquired operating interests in two new offshore licenses with plans to develop a new production hub in the Kwanza Basin, offshore Angola.
The French supermajor has signed a sale and purchase agreement with Angolas' state-owned Sonangol to acquire interests in Blocks 20/11 and 21/09
Subject to the approvals of the competent authorities and partners, Total 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, as well as 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 two blocks have produced four 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 said it 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 two licenses before putting in place an operating company together with Sonangol three years after the production startup.
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 Chief Executive Officer of Total.
“Sonangol welcomes Total as new operator of these strategic blocks,” added Sebastião Gaspar Martins, Chairman and Chief Executive Officer of Sonangol. “We are confident that Total’s recognized offshore expertise will help to quickly unlock discovered resources in order to continue sustaining the Angola’s production.”