Total, Sonangol ink new deals

Total and Sonangol have signed a series of deals on E&P activities as well as downstream co-operation, the French super-major announced Monday.

The two companies agreed on the contractual conditions for the second phase of the Zinia project as well as to explore Block 48 jointly, drilling one exploration well in the next two years. They also signed an MoU to develop a retail network and another to look at renewable energy opportunities in the country together.

“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 to this dynamic by restarting exploration offshore in Angola, launching new projects such as Zinia 2 on Block 17, and extending our co-operation with Sonangol to new businesses in oil product distribution and renewable energy,” said Patrick Pouyanné, the chairman and CEO of Total. “In particular, Total is making all necessary efforts to ensure a start-up as soon as possible during summer 2018 for the Kaombo project, currently the most significant investment in the country.”

The Kaombo project started in May 2015 and reached a 70% completion status at the end of 2016. The project is expected to have a total production capacity of 230,000 bopd, about a third of Angola’s total.