Angola: Sonangol, Total sign $400M deal for Kwanza Basin blocks 20, 21

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Angola: Sonangol, Total sign $400M deal for Kwanza Basin blocks 20, 21

9:42 CAT | 16 Dec 2019

Photo: Lusa

Sonangol and French oil company Total signed on Monday in Luanda an agreement to buy and sell Blocks 20 and 21, which initially cost US$400 million (359.5 million euros).

The purchase and sale agreements for Blocks 20 and 21, located in the Kwanza Basin, were initialled today by Total’s presidents, Patrick Pouyanné, and Sonangol, Sebastião Martins.

“It should be noted that the value currently being negotiated foresees the possibility, in a first phase, of a value of US$400 million and then two tranches, depending on the evolution of the price of oil, which allow an additional US$1.25 per barrel produced,” he explained.

Martins also said that in the two tranches, 250 million dollars (224.7 million euros) could be reached and, depending on the levels of production that are reached “will certainly exceed 750 million dollars (674.1 million euros)”.

Chairman of the National Oil and Gas Agency (ANPG), Jerónimo Paulino, said that for block 20 it was expected that Total would buy 50% of the shares, with the contractor group being made up of Total as operator, with 50%, British Petroleum (BP) (30%) and Sonangol (20%).

Jerónimo Paulino noted that in the first phase Total will be the operator and in a second phase, the operation will be transferred to Sonangol.

With regard to Block 21, Total is expected to acquire 80% of the equity interest, with the contractor group made up of Total as operator (80%) and Sonangol (20%), and in a similar situation to Block 20, the Angolan state-owned oil company will become an operator.

“These agreements will allow the development of discoveries of crude oil, gas and condensate, but not only that, they will also allow the continuous search for new reserves,” said Jerónimo Paulino.

Block 21 is located in the central part of the Kwanza Basin’s offshore zone, with a water depth ranging from 300 to 1,700 metres, while Block 21 is located in the south-central part of the Kwanza Basin’s offshore zone, with a water depth ranging from 1,600 to 1,800 metres.

Source: Lusa