French oil and gas major Total and Angola’s national oil company Sonangol have signed various agreements covering upstream and downstream activities in the Southern African country.
The agreements will result in restarting of offshore exploration in Angola, launch of new projects and new businesses in renewable energy and oil product distribution.
Total and Sonangol have come to an agreement on the contractual conditions for the Zinia Phase 2 project. Following this, the project which will see Zinia 2 connected to the Pazflor floating production, storage and offloading (FPSO), will move towards a final investment decision.
A part of the Pazflor oil field, the Zinia field is located in block 17. It is operated by Total which has a stake of 40% and is partnered by Statoil (23.33%), Esso Exploration Angola Block 17 (20%) and BP Exploration Angola (16.67%).
After the completion of the project, the Zinia field is expected to have a daily production of 40,000 barrels.
Total has also agreed to jointly explore Block 48 alongside Sonangol through a new deal which would mark the resumption of deep-water exploration in Angola.
The first phase of the exploration program will be for a two-year period and will involve drilling of an exploration well.
Total and Sonangol have also inked a memorandum of understanding (MoU), following which they will jointly create a retail network in Angola. The new retail network would include logistics and the supply of oil products.
Apart from that, the two firms have signed another MoU for jointly screening opportunities for supply of renewable energy across Angola.
Total chairman and CEO Patrick Pouyanné said: “As Angola’s main oil partner, we are pleased with the strong willingness expressed by the country’s new authorities to drive an investment dynamic in the oil and gas sector, essential to the country’s economy, after three years impacted by the sharp drop in prices.”
Pouyanné added that Total is also looking to ensure that the Kaombo project is started during summer 2018. The deep offshore project, which is touted to be the most significant investment in Angola as of now, is estimated to have reserves of 650 million barrels.