The companies will operate offshore Block 1 of São Tomé and Príncipe’s Exclusive Economic Zone.
Angola’s national oil company Sonangol and French supermajor Total have signed a production sharing agreement with São Tomé and Príncipe’s National Oil Agency (ANP) to explore and produce oil in Block 1 of the country’s Exclusive Economic Zone.
Total has a 55 percent share, Sonangol 30 percent and the São Tomé and Principe government 15 percent.
Deep water block 1 – which covers an area of 3.292 km2 – will be explored by both companies who are obliged to pay the state a signing bonus of $2.5 million. The partners will also spend $1 million over a four-year period on social projects in the country.
“Oil production – which we all hope will happen – can bring with it a fundamental contribution to what we do with the oil resources of this country towards an important progress for the people of São Tomé,” Olegário Tiny, head of ANP, told Jornal de Angola.
The agreement has a duration of 28 years and defines the first eight years as an exploration phase.
“Total and Sonangol are very satisfied with the agreement of Block 1 and this event marks the entry of the Total group in São Tomé,” added Total representative Gui Maurice.
Total and Sonangol are partners in a number of offshore Angolan blocks. This is the first time they team up for operation outside Angola.