Oil and gas multinational Total and Angola State-owned oil company Sonangol have signed various agreements to jointly develop new upstream and downstream projects.
Total chairperson and CEO Patrick Pouyanné on Monday held an audience with Angolan President João Lourenço and Sonangol chairperson Carlos Saturnino during which the agreements were concluded.
The parties have agreed to jointly develop the Kaombo project and develop the Zinia Phase 2 project, as well as to restart the deep offshore exploration of Block 48.
Further, the parties signed memoranda of understanding to jointly develop a retail network, including for the logistics and supply of oil products and to jointly screen for renewable energy supply opportunities in Angola.
“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.
“Today’s agreements demonstrate Total’s willingness to contribute 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,” said Pouyanné.
In particular, Total is taking all necessary efforts to ensure the start-up of the Kaombo project, which it says is currently the most significant investment in the country, during the summer of 2018.
Total and Sonangol agreed on the contractual conditions for the development of Zinia Phase 2, which enabled a commitment to the final investment decision. Located in Block 17 and operated by Total (40%), Zinia 2 will be connected to the offshore oil development company Pazflor’s floating production storage and offloading facility and will produce 40 000 bbl/d.
Further, the companies decided to jointly explore Block 48. This agreement contributes to restarting deep offshore exploration in Angola. The first phase of this programme will last for two years with the drilling of one exploration well.