French oil company Total plans to invest US$16 billion in the ultra-deep water of Angola’s offshore area, Angolan state oil company, Sonangol, said in a statement.
Sonangol said the cash would be spent on the Kaombo project and was US$4 billion less than initially planned.
The Kaombo project is expected to have initial daily production of 230,000 barrels of crude oil starting in 2017 and its reserves are estimated to total 650 million barrels.
The project is located some 260 kilometres off the coast of Luanda, in waters that are between 1,400 and 1,900 metres deep.
It will include development of six of the 12 oil discoveries made in Block 32 (Gengibre, Gindungo, Caril, Canela, Mostrada and Louro), spread over an are of 80 square kilometres, in the central and southeast areas of the Block.
The development plans for the Kaombo project include 59 wells linked to two floating, production, storage and offloading units (FPSO), with a daily production capacity of 115,000 barrels each.
The two FPSO’s will be created by converting two very large crude carriers (VLCC). Associated natural gas will be exported to the onshore liquefaction unit, Angola LNG, located in the city of Soyo, in Zaire province.
France’s Total is the operator of Block 32, in which it owns a stake of 30 percent, alongside Sonangol Pesquisa & Produção, also with 30 percent, Sonangol Sinopec Internacional (20 percent), ExxonMobil (15 percent) and Portugal’s Galp (5 percent). (macauhub/AO)