Total announces sale of Angolan offshore exploration asset

February 04, 2014 - 2:13:22 pm

PARIS: French oil group Total has agreed to sell its stake of 15.0 percent in an oil exploration field off Angola to local state oil group Sonangol for $750 million, the company said on Tuesday.

The deal, worth the equivalent of 554 million euros, was "in line with Total's global strategy to actively manage its portfolio and focus its investment capability on core assets," senior executive for Total's production in Africa, Jacques Marraud des Grottes said.

The sale concerned Block 15/06, "located approximately 350 kilometres or 219 miles northwest of Luanda in deep offshore Angola and covers approximately 2,984 square kilometres, with a water depth ranging from 220 to 1,700 metres," the company said.

The block has been operated by Italian group Eni with 35 percent, Total 15 percent, Sonangol 15 percent, SSI - a joint affiliate of China's Sinopec and Sonangol, 25 percent, Norwegian Statoil 5.0 percent, and Falcon Oil Angola Investimentos 5.0 percent.

Production from part of the block was expected to begin in 2015.

The group preferred to focus on Block 17 in a project under development, and on development of the Kaombo asset on Block 32 in Angola, Grottes said.

"Block 17, where the Group is operator with a 40-percent interest, is Total's main asset in Angola," the statement said.

Production from this overall area was expected to begin this year.

Since the end of last year, Total is the leading operator in Angola, producing about 600,000 barrels of oil equivalent per day. (AFP)