Total announced on December 16th a sale and purchase agreement with Sonangol to acquire interests in Blocks 20/11 and 21/09 in the Kwanza Basin, offshore Luanda. The group will hold a 50% working interest, alongside Sonangol (20%) and BP (30%), in Block 20/11, located in the central Kwanza Basin in water depths ranging from 300 to 1,700 m. The group will hold an 80% working interest alongside Sonangol (20%) in Block 21/09, located in the south-central Kwanza Basin in water depths ranging from 1,600 to 1,800 m. The wells drilled so far in the two blocks have produced four discoveries (Cameia, Mavinga, Bicuar, and Golfinho), and Total and its partners will seek to create a development hub.
Total has also committed to explore for additional potential resources in the blocks. As part of the agreement, Total will become operator of the development of the two licenses before putting in place an operating company together with Sonangol three years after the production start-up. As per the transaction terms, Total will pay to Sonangol USD 400 million at closing, to which will be added 100 million at FID and some additional payments along the life of the project depending on production and oil price for a maximum cumulative amount capped at 250 million.