140,000 bopd accounts for approximately a half of Congo's oil production. (Image source: Adobe Stock)

TotalEnergies will be investing US$600mn for exploration and production upkeep of Moho Nord field in the Congolese deepwaters

At roughly 140,000 barrels of oil per day, the Moho Nord field accounts for approximately half of oil production from Congo.

With four reservoirs spanning across 320 sq km in water depths of 750m to 1,200m, TotalEnergies is working towards ensuring an additional production of 40,000 bpd, taking the country's yeild count to 267,000 bpd.

Following an acquisition agreement with Trident Energy, TotalEnergies will enjoy majority operational stake in the Moho permit with 63.5%. Trident set up shop in Congo this April following its acquisition of the entire issued share capital of Chevron Overseas (Congo) Limited.

Besides work in Moho Nord, this year TotalEnergies is expecting production from offshore Marine XX permit. 

Two drilling rigs have already arrived to start production from almost 2,000m water depths in an area of 3,285.8 sq km.

Gas Master Plan

The Republic of Congo's national policy game is going strong with its proposed Gas Master Plan and a strategic partnership with Algeria. The partnership will enable the respective national oil companies, Sonatrach and SNPC to share downstream expertise. They have also plans to develop an African Energy Bank to invest in oil and gas projects across the continent.

The concept of Gas Master Plan was introduced by Congo’s Ministry of Hydrocarbons and passed with heightened enthusiasm during the Invest in African Energy 2024 summit in Paris. To facilitate a more streamlined approach in leveraging the country's gas assets, Eni sold its participation interests in several upstream permits in Congo to Perenco, early this year. 

A collaboration between SNPC and Wood Mackenzie, the Gas Master Plan is currently in its final stages. Once operational, it will not only incentivise the development of the national gas sector by encouraging commercialisation of stranded assets and flared natural gas, but also serve as roadmap to harness gas resources for domestic consumption and export. It will establish a new gas code, making current fiscal terms more flexible, especially for small-scale projects.

SNPC CEO Raoul Ominga has been working closely with the Ministry to get final approval on the Gas Master Plan, which is expected this month. 

Launching of the Kaminho project. (Image source: TotalEnergies)

The final investment decision (FID) for the potentially 70,000bopd-Kaminho deepwater project offshore Angola has been closed by Patrick Pouyanné, chairman and CEO of TotalEnergies; João Lourenço, President of Angola; Diamantino Azevedo, Minister of Mineral Resources, Oil & Gas (MIREMPET); Paulino Jerónimo, chairman and CEO of ANPG, and Gaspar Martins, chairman and CEO of Sonangol 

“Building on our pioneering spirit and our long-term partnership with Angola, we are pleased to launch the Kaminho project along with our strategic partners, Sonangol and Petronas, and the strong support and confidence of the Angolan authorities. This project, which leverages innovation to fit with our investment criteria - breakeven under 30 $/b and carbon intensity of 16 kg CO2e/boe - will become our seventh FPSO in the country and the first-ever development in the Kwanza basin," said Pouyanné. 

The Block 20/11 site that includes Cameia and Golfinho fields is situated 100 km off the coast of Angola by 1,700 m water-depth, and is the first large deepwater development in the Kwanza basin. Its shareholders are TotalEnergies (40%), Petronas (40%) and Sonangol (20%). 

The FID will support the conversion of a very large crude carrier (VLCC) to a floating production storage and offloading (FPSO) unit. Connected to a subsea production network, the unit will be distinguished in its all-electric, sustainable feature. It will have the capacity to minimise greenhouse gas emissions, with scope for a full gas reinjection into the reservoirs to eliminate routine flaring. Bulk of the work will be delivered for TotalEnergies by Saipem under contracts worth US$3.7bn.

MoU to advance oil and gas decarbonisation

Sonangol EP is planning the Sumbe Reasearch and Development Centre to advance the decarbonisation of oil and gas industry, with a strong focus on methane emissions reduction and renewable energies. It has tied up with TotalEnergies on the project through a memorandum of understanding (MoU), whereby it will support the Sonangol research and technology teams with skill development on reservoir geology, process electrification and photovoltaics.

“We look forward to joining forces with Sonangol in technology to promote innovation and low-carbon technologies for the energy industry in Angola, in particular to slash methane emissions and contribute to the diversification of Angola's energy mix,” Pouyanné said. 

With offshore operations and construction at local yards, the Kaminho project will involve more than 10 mn man-hours in Angola. 

“This partnership is for us of extreme importance, as it creates a joint operating entity between Sonangol and TotalEnergies in production phase. It is also relevant that the contracts signed today include national companies and contribute to local content with more than 10 million hours of work to be performed by local companies,”said de Azevedo.

Production start-up is expected in 2028.

Located approximately 100 km off the coast of Angola, the Kaminho project involves the development of the Cameia and Golfinho oil fields. (Image source: Adobe Stock)

Development of the Kaminho project in Angola is off to a good start with Saipem bagging three contracts from TotalEnergies-subsidiary, TotalEnergies EP Angola Block 20

Located approximately 100 km off the coast of Angola, the Kaminho project involves the development of the Cameia and Golfinho oil fields. 

An integrated business model that offers offshore and plant project management and engineering services, combined with a state-of-the-art fleet and local fabrication capacity, makes Saipem well-equiped to deliver the US$3.7bn contracts with diverse scopes of work.

SURF, FPSO and O&M contracts

The first contract is for engineering, procurement, construction, transportation and commissioning services of the Kaminho floating production storage and offloading (FPSO) vessel.

The second contract outlines the operation and maintenance (O&M) of the Kaminho FPSO vessel for a firm period of 12 years with a potential eight-year extension. These services will draw on the expertise acquired from three other FPSOs that are currently deployed in Angola.

The third contract involves the engineering, procurement, construction, installation, pre-commissioning and assistance for the commissioning and start-up of a subsea, umbilicals, risers and flowlines (SURF) package, which is made up of approximately 30 km of 8” and 10" subsea flowlines and risers, and umbilicals.

The associated structures will be fabricated in Saipem’s local yard in Ambriz.

For the offshore campaign, and specifically for the J-lay vessel, Saipem will deploy its FDS majorly through local supply chain for logistics and fabrication activities. 

The project adds to the 'resurgence of activity offshore Angola', as Chris Dyer of Oceaneering put it, while commenting on another TotalEnergies EP Angola initiative, the GIR FLEX'resurgence of activity offshore Angola', as Chris Dyer of Oceaneering put it, while commenting on another TotalEnergies EP Angola initiative, the GIR FLEX.   

Gross productions reached 93 kbopd from Jubilee and 19 kbopd from TEN. (Image source: Adobe Stock)

With high production efficiency from the Jubilee and Ten fields, Tullow Oil reported a stable first quarter in 2024 

Gross productions from Jubilee reached 93 kbopd (36 kbopd net) while surpassing expectations, TEN yielded 19 kbopd (10 kbopd net). The interim gas sales agreement that is currently in place for Jubilee associated gas has been extended for 18 months at US$2.95/mmbtu with applicable indexation.

More than three new Jubilee wells were brought onstream, and a water injector well will be online in the second quarter. If all goes well, Tullow can wrap up the ongoing drilling programme six months before schedule. 

With a full year free cash flow guidance at US$200-300mn, the company is on track to deliver US$600mn free cash flow over 2024 to 2025 at US$80 per barrel and sustainable free cash flow generation thereafter.

It can also bring down net debt to less than US$1.4bn and cash gearing of net debt to EBITDAX at US$80 per barrel by 2024 end.

Group working interest production guidance remains 62-68 kboepd, with the full-year outcome expected to be towards the lower end of the range.

Production from non-operated portfolio in Gabon and Côte d’Ivoire was in line with expectations at 13 kboepd net in the first quarter.

Tullow Oil will publish its 2024 Half Year Results on 7 August. 

Capitalising on high oil price

Rahul Dhir, CEO, Tullow, said, “I would first like to thank our investors, host nations and host communities for their support ... I look forward to reflecting on the substantial progress Tullow has made and the strong outlook for the future as we continue our trajectory to build a unique pan-African platform for growth.

"Since the start of the year, we have seen good delivery of our operational programme. We are on track to deliver our free cash flow expectations of US$600mn over 2024 to 2025 at US$80/bbl and we are well placed to capitalise on a higher oil price environment. At the same time, we are positioning ourselves to deliver material sustainable free cash flow in 2026 and beyond.” 

In the company's last annual update, Dhir had highlighted its continued focus on operational excellence, capital efficiency and investments to drive growth.