Energy company Total has signed a sale and purchase agreement with state-owned Sonangol of Angola to acquire interests in Blocks 20/11 and 21/09 in the Kwanza Basin, offshore Luanda
Subject to the approvals of the competent authorities and partners, Total will hold a 50 per cent working interest, alongside Sonangol (20 per cent) and BP (30 per cent), in Block 20/11, located in the central Kwanza Basin in water depths ranging from 300 to 1,700 m, as well as an 80 per cent working interest alongside Sonangol (20 per cent) in Block 21/09, located in the south-central Kwanza Basin in water depths ranging from 1,600 to 1,800 m.
The wells drilled so far in the two blocks have produced four discoveries — Cameia, Mavinga, Bicuar and Golfinho — and Total and its partners plans to create a development hub. The group has also committed to explore for additional potential resources in the blocks.
As part of the agreement, the company will become an operator of the development of the two licenses before setting up an operating company with Sonangol three years after the start-up of the production.
As per the transaction terms, Total will pay to Sonangol US$400mn at closing, to which will be added US$100mn at FID and some additional payments along with the life of the project depending on production and crude oil price for a maximum cumulative amount capped at US$250mn.
Patrick Pouyanné, chairman and CEO of Total, said, “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.”
Sebastião Gaspar Martins, chairman and CEO of Sonangol, commented, “Sonangol welcomes Total as the new operator of these strategic blocks. We are confident that Total’s recognised offshore expertise will help to quickly unlock discovered resources in order to continue sustaining Angola’s production.”
