France's Total buys stakes in two Angola offshore oil blocks

17th December 2019 By: Reuters

Total said on Monday it had acquired interests in two new offshore licences in Angola with a view to developing a new production hub alongside the French oil major's partners.

Wells drilled so far in the two blocks have produced four discoveries, Total said. It will pay Angolan state oil firm Sonangol $400-million when the deal closes, to which $100-million will be added when a final investment decision is made, along with additional payments during the life of the project.

Total said it will be the operator of the two licenses before putting in place an operating company together with Sonangol three years after the production start-up.

It will have a 50% working interest, alongside Sonangol's 20% and BP's 30% in Block 20/11, in the central Kwanza Basin offshore Luanda. It will hold an 80% stake, while Sonangol will hold 20% in Block 21/09 in the south-central Kwanza Basin.

Total also said it had extended all block 17 production licenses in Angola until 2045.