French oil major Total and Angola’s Sonangol on Monday signed several agreements covering both upstream and downstream activities.
Patrick Pouyanné, Chairman and CEO of Total, had an audience on Monday with João Lourenço, recently elected President of the Republic of Angola, and with Carlos Saturnino, new Chairman of Sonangol, the national oil company.
On this occasion, Total and Sonangol signed several agreements covering both upstream and downstream activities.
“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 cooperation with Sonangol to new businesses in oil product distribution and renewable energy,” said Patrick Pouyanné, 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 discussions held on Monday resulted in several agreements between Total and Sonangol. The first agreement is related to Zinia Phase 2 project development.
Namely, Total and Sonangol agreed on the contractual conditions for the development of Zinia Phase 2, enabling a commitment to the final investment decision. Located in Block 17 and operated by Total (40%), Zinia 2 will be connected to the Pazflor FPSO and will produce 40,000 barrels per day.
Furthermore,Total and Sonangol have decided to jointly explore Block 48 offshore Angola. This agreement contributes to restarting deep offshore exploration in Angola. The first phase of this program will last for two years with the drilling of one exploration well.
The two companies have also agreed an extension of their cooperation in distribution of oil products and renewable energy.
Namely, Total and Sonangol signed a Memorandum of Understanding (MoU) to develop jointly a retail network in the country including logistics and the supply of oil products and signed an MoU providing for them to screen jointly opportunities for renewable energy supply in Angola.