Total Takes FID on $1.2B Angola Deep Offshore Development



Total Takes FID on $1.2B Angola Deep Offshore Development
Total S.A takes the final investment decision to launch the Zinia 2 deep offshore development in Block 17, 93 miles offshore Angola.

Total S.A revealed Monday that it, along with its partners, has taken the final investment decision (FID) to launch the Zinia 2 deep offshore development in Block 17, 93 miles offshore Angola.

The $1.2 billion Zinia 2 project, which will have a production capacity of 40,000 barrels per day, comprises nine wells in water depths ranging from 1,968 feet to 3,937 feet.

“Zinia 2 opens a new chapter in the history of Block 17. This project will allow to extend the profitability of this prolific block, with over 2.6 billion barrels already produced,” Arnaud Breuillac, president of Total exploration and production, said in a company statement.

“The project is also a good example of capex discipline and cost optimization. The work carried out to simplify the design while capturing deflation allowed the partners to cut the development costs by more than a half,” he added.

Total operates Block 17 with a 40 percent interest, alongside Equinor (23.33 percent), ExxonMobil (20 percent), and BP (16.67 percent). Sonangol is the concessionaire.

In addition to announcing the Zinia 2 FID on Monday, Total revealed that during an official visit to France by João Lourenço, the president of the Republic of Angola, Patrick Pouyanné, chairman and CEO of Total, and Carlos Saturnino, chairman of the board of directors of Sonangol, signed several agreements covering upstream and downstream activities in Angola. These comprised:

  • A risk service agreement for the deepwater Block 48 exploration license, which Total will operate.
  • A framework agreement for the future joint venture between Total and Sonangol to jointly develop a network of service stations in Angola, including petroleum product logistics and supply.
  • A memorandum of understanding to fund 50 new scholarships for young Angolans to study at French universities by end-2019.

“Total, as Angola’s main oil and gas producer, continues to help develop the country’s oil and gas resources,” Pouyanné said.

“The group appreciates the joint efforts of the Angolan authorities, Sonangol and the industry to enhance taxation framework and regulations. These changes are vital to revive investment in this key sector of the Angolan economy and develop new projects, including those planned in Block 17,” he added.

In a statement on Twitter, Pouyanné said he was “happy” to meet with the president of the Republic of Angola and stated that Total was “committed” to the economic and social development of the country.

 

 



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.