Total, Sonangol in Angola Pact
Total and Sonangol have signed several agreements covering both upstream and downstream activities in Angola, paving the way for a number of new projects in the country.
The companies agreed on the contractual conditions for the development of the Zinia Phase 2 project, enabling a commitment to the final investment decision, and decided to jointly explore Block 48. The first phase of this exploration program will last for two years with the drilling of one exploration well.
In addition, Total and Sonangol signed Memorandums of Understanding to jointly develop a retail network in Angola for the supply of oil products and to screen opportunities for renewable energy supply in the country.
“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,” said Patrick Pouyanné, chairman and CEO of Total, in a company statement.
“[The] agreements demonstrate Total’s willingness to contribute to this dynamic by restarting exploration offshore in Angola, launching new projects such as Zinia 2 on Block 17, and extending our cooperation with Sonangol to new businesses in oil product distribution and renewable energy,” he added.
Zinia 2, which is located in Block 17 and operated by Total (40 percent), will be connected to the Pazflor FPSO and is expected to produce 40,000 barrels per day.
Total has been present in Angola since 1953 and is the leading oil operator in the country. The group’s production stood at 243,000 barrels of oil equivalent per day in 2016, with output stemming from Blocks 17, 14, 0 and Angola LNG.
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.