TotalEnergies, Petronas, Sonangol to proceed with Angolan deepwater project

21st May 2024 By: Darren Parker - Creamer Media Contributing Editor Online

TotalEnergies, Petronas, Sonangol to proceed with Angolan deepwater project

Photo by: Bloomberg

Energy company TotalEnergies (40%), along with its Block 20/11 partners, Petronas (40%) and Sonangol (20%), have announced the final investment decision (FID) of the Kaminho deepwater project to develop the Cameia and Golfinho fields, located 100 km off the coast of Angola, in 1 700 m of water.

This FID has been made possible thanks to a close collaboration with the concessionaire Agencia Nacional de Petroleo e Gas (ANPG).

TotalEnergies chairperson and CEO Patrick Pouyanné, Angola President João Lourenço, Angola Mineral Resources, Oil and Gas (MIREMPET) Minister Diamantino Azevedo, ANPG chairperson and CEO Paulino Jerónimo and Sonangol chairperson and CEO Gaspar Martins met on May 20, in Luanda, Angola, to announce the FID.

The Kaminho project, which is the first large deepwater development in the Kwanza basin, comprises the conversion of a very large crude carrier (VLCC) to a floating production storage and offloading (FPSO) unit, which will be connected to a subsea production network.

Designed to minimise greenhouse-gas emissions and eliminate routine flaring, this FPSO is all-electric and associated gas will be fully reinjected into the reservoirs. Production startup is expected in 2028 and it will produce up to 70 000 bbl/d of oil.

“Building on our pioneering spirit and our long-term partnership with Angola, we are pleased to launch the Kaminho project along with our strategic partners, Sonangol and Petronas, and the strong support and confidence of the Angolan authorities.

“This project, which leverages innovation to fit with our investment criteria – breakeven under $30/bbl and carbon intensity of 16 kg of CO2-equivalent per barrel of oil-equivalent – will become our seventh FPSO in the country and the first-ever development in the Kwanza basin,” Pouyanné said.

The Kaminho project will involve more than ten-million man-hours, mainly with offshore operations and construction at local yards.

TotalEnergies and Sonangol have also signed a memorandum of understanding to share expertise on research and technology (R&D), notably with regard to decarbonisation of the oil and gas industry, with a strong focus on methane emissions reduction and renewable energies.

TotalEnergies’ teams will provide support to Sonangol for the startup and operation of its new Sumbe R&D centre and for the development of the skills of the Sonangol R&D teams, with a focus on reservoir geology, process electrification and solar PV.

“We look forward to joining forces with Sonangol in technology to promote innovation and low-carbon technologies for the energy industry in Angola, in particular to slash methane emissions and contribute to the diversification of Angola's energy mix,” Pouyanné said.

“This partnership is for us of extreme importance, as it creates a joint operating entity between Sonangol and TotalEnergies in production phase. It is also relevant that the contracts signed today include national companies and contribute to local content with more than ten-million hours of work to be performed by local companies,” De Azevedo said.

“The first development in the maritime zone of the Kwanza basin is important to showcase the opening of new oil frontiers in Angola, and it’s part of our strategy to keep Angola on the top of African oil producers, bringing important income to our economy,” Jerónimo said.

“The FID [for the] Kaminho project materialises the commitment and efforts made by the Angolan government, through its Ministry and National Concessionaire, and TotalEnergies, Sonangol and Petronas as partners. They allowed the right conditions to contribute to increasing national production of oil and natural gas, and with that the revenues for the country,” Martins said.

“This milestone is in line with Petronas’ continued efforts to strengthen our international portfolio by participating in prospective regions in Africa with trusted partners.

“Reaching the FID for this development in the Kwanza basin further demonstrates our steadfast commitment to deliver much-needed reliable energy to our customers and sustainable long-term value to our stakeholders,” Petronas president and group CEO Tan Sri Tengku Muhammad Taufik added.

TotalEnergies and Petronas each have a 40% interest in the Kaminho project, with Sonangol holding the balance.

SAIPEM CONTRACTS

Engineering and construction group Saipem, meanwhile, announced on May 21 that it had been awarded three contracts, valued at a combined $3.7-billion, by TotalEnergies for the Kaminho project.

The first contract is for the engineering, procurement, construction, transportation and commissioning of the Kaminho FPSO vessel.

The second is for the operation and maintenance of the FPSO vessel for 12 years, with potential to extend for a further eight years.

Lastly, Saipem will also be responsible for the engineering, procurement, supply, construction, installation and precommissioning, as well as assistance in commissioning and startup, of a subsea umbilicals, risers and flowlines package.

The group states that the award of these three contracts confirms the competitiveness of its integrated business model.