Total sells block interest offshore Angola for $750 million

Total SA will sell 15% participating interest in offshore Angola Block 15/06 to Sonangol E&P for $750 million.

Block 15/06, which covers 2,984 sq km, lies in 220-1,700 m of water 350 km northwest of Luanda off Angolam.

The northwestern hub of the block, currently under construction, is expected to produce in 2015. Total said a final investment decision for a northeast project is expected to be made this year.

Eni SPA is the block’s operator with 35% interest. Partners are Sinopec’s and Sonangol’s joint affiliate SSI 25%, Total 15%, Sonangol 15%, Statoil 5%, and Falcon Oil Angola Investimentos 5%.

“The sale of our interest in Block 15/06 is in line with Total’s global strategy to actively manage its portfolio and focus its investment capability on core assets in which it has more material interests, such as Block 17 with the CLOV project currently under development and the future development of Kaombo on Block 32 in Angola,” said Jacques Marraud des Grottes, senior vice-president, Africa at Total’s exploration and production.

Angola E&P activity

Total, in Angola since 1953, reported a 2013 SEC equity production of 186,000 boe/d, most of which came from Blocks 17, 0, and 14. At the end the year, Total’s operated production was 600,000 boe/d.

The company’s primary Angola asset is Block 17, which it operates with 40% interest (OGJ Online, Oct. 17, 2006). The block’s four major hubs are Girassol-Rosa, Dalia, Pazflor, and CLOV’s pooling of discoveries Cravo, Lirio, Orquidea, and Violeta. Total said Girassol-Rosa, Dalia, and Pazflor are currently producing while CLOV’s development, launched in 2010, is expected to start-up in 2014 (OGJ Online, Aug. 11, 2010).

Total also is operator with 30% interest of ultradeepwater Block 32, where 12 discoveries have confirmed the block's potential for oil production (OGJ Online, Aug. 7, 2007). Studies are under way for development in the Kaombo development project in the central southeastern sector of the block.

The Angola LNG project, in which Total holds 13.6% interest, is bringing the country’s natural gas reserves to market. The LNG plant will initially be supplied with associated gas from fields on Blocks 15, 17, and 18 and eventually from gas fields on Blocks 0 and 14, the company said.