Total on Monday signed a sale and purchase agreement with Angola’s state-owned Sonangol to acquire interests in two new offshore licenses in the Kwanza Basin.
The multination oil company will hold a 50% working interest, alongside Sonangol (20%) and BP (30%), in Block 20/11 and an 80% working interest alongside Sonangol (20%) in Block 21/09.
“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.
Total will become operator of the development of the two licenses before putting an operating company together with Sonangol three years after production start-up.
According to the transaction terms, Total will pay to Sonangol $400 million at closing, and another $100 million when a final investment decision is made, with additional payments along the life of the project.
“Sonangol welcomes Total as new operator of these strategic blocks. We are confident that Total’s recognized offshore expertise will help to quickly unlock discovered resources in order to continue sustaining the Angola’s production, noted added Sebastião Gaspar Martins, Chairman and Chief Executive Officer of Sonangol. “
Wells drilled in the two blocks to date have produced four discoveries.