Patrick Pouyanné, Chairman and CEO of Total and the new Chairman of Angola's national oil company Sonangol signed several agreements covering both upstream and downstream activities.
The several agreements covered the upstream side including the development of Zinia Phase 2 and joint exploration of Block 48.Both firms also signed an MoU on developing a joint retail network.
“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.”
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 17and operated by Total (40 per cent), Zinia 2 will be connected to the Pazflor FPSO and will produce 40,000 bpd.
The oil firm's also agreed to jointly explore Block 48. 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.
Finally an MoU was signed that will look at developing jointly a retail network in the country will include logistics and the supply of oil products.