Total has signed a sale and purchase agreement with stateowned Sonangol of Angola to acquire interests in Blocks 20/11 and 21/09 in the Kwanza Basin, offshore Luanda.
As part of the agreement, Total will become operator of the development of the two licenses before putting in place an operating company together with Sonangol 3 years after the production start-up.
As per the transaction terms, Total will pay to Sonangol US$400 million at closing, to which will be added $100 million at FID and some additional payments along the life of the project depending on production and crude oil price for a maximum cumulative amount capped at $250 million.
The deal is 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 meters.
Total will hold an 80 per cent working interest alongside Sonangol (20%) in Block 21/09, located in the south-central Kwanza Basin in water depths ranging from 1,600 to 1,800 meters.
“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,” stated Patrick Pouyanné, chairman and chief executive officer of Total.
“Sonangol welcomes Total as new operator of these strategic blocks,” added Sebastião Gaspar Martins, chairman and chief executive officer of Sonangol.
The wells drilled so far in the two blocks have produced four discoveries — Cameia, Mavinga, Bicuar and Golfinho — and Total and its partners said they would seek to unlock the value of these prospects by creating a development hub.