TotalEnergies’ launch of deepwater project opens ‘new oil frontiers’ offshore Angola

TotalEnergies EP Angola, a subsidiary of France’s energy giant TotalEnergies, has made a final investment decision (FID) for a deepwater oil project in Block 20 located in the Kwanza basin offshore Angola.

Thanks to the FID, which was previously expected in 2023, TotalEnergies will develop the Kaminho project, covering the Cameia and Golfinho fields, located 100 km off the coast of Angola, in 1,700 m water depth. The oil major explains that this milestone has been made possible due to a close collaboration with the concessionaire, Agencia Nacional de Petroleo e Gas (ANPG).

Patrick Pouyanné, Chairman and CEO of TotalEnergies, commented: “Building on our pioneering spirit and our long-term partnership with Angola, we are pleased to launch the Kaminho project along with our strategic partners, Sonangol and Petronas, and the strong support and confidence of the Angolan authorities.

“This project, which leverages innovation to fit with our investment criteria – breakeven under 30 $/b and carbon intensity of 16 kg CO₂e/boe – will become our seventh FPSO in the country and the first-ever development in the Kwanza basin.”

The Kaminho project which is said to be the first large deepwater development in the Kwanza basin, encompasses the conversion of a very large crude carrier (VLCC) to a floating production storage and offloading (FPSO) unit, which will be connected to a subsea production network. TotalEnergies E&P Angola operates Block 20/11 with a 40% interest, alongside Petronas Angola E&P Ltd (PAEPAL, 40%) and Sonangol Pesquisa & Produção SA (20%).

Paulino Jerónimo, Chairman of the Board of ANPG,noted: “The first development in the maritime zone of the Kwanza basin is important to showcase the opening of new oil frontiers in Angola, and it’s part of our strategy to keep Angola on the top of African oil producers, bringing important income to our economy.”

Furthermore, the FPSO for the Kaminho project, designed to minimize greenhouse gas (GHG) emissions and eliminate routine flaring, is described as all-electric. The associated gas is expected to be fully reinjected into the reservoirs. With a plateau of 70,000 barrels of oil per day, the production start-up is anticipated in 2028. The project is estimated to involve over 10 million man-hours in Angola, mainly with offshore operations and construction at local yards.

Diamantino de Azevedo, Minister of Mineral Resources, Oil & Gas (MIREMPET), highlighted: “This partnership is for us of extreme importance, as it creates a joint operating entity between Sonangol and TotalEnergies in production phase. It is also relevant that the contracts signed today include national companies and contribute to local content with more than 10 million hours of work to be performed by local companies”.

According to Gaspar Martins, CEO of Sonangol, the FID for the Kaminho project is a materialization of the commitment and efforts made by the Angolan government, through its Ministry and National Concessionaire, and TotalEnergies, Sonangol, and Petronas as partners, which enabled the “right” set of conditions to contribute to boosting production of oil and natural gas, along with the Angola’s revenues.

Tan Sri Tengku Muhammad Taufik, Petronas President and Group CEO, remarked: “This milestone is in line with Petronas’ continued efforts to strengthen our international portfolio by participating in prospective regions in Africa with trusted partners. Reaching the FID for this development in the Kwanza basin further demonstrates our steadfast commitment to deliver much-needed reliable energy to our customers and sustainable long-term value to our stakeholders.”

Moreover, TotalEnergies and Sonangol have inked a memorandum of understanding (MoU) to share expertise on research and technology, notably in the decarbonization of the oil and gas industry, focusing strongly on methane emissions reduction and renewable energies.

As a result of the MoU, the French player’s teams will provide support to Sonangol for the start-up and operation of its new Sumbe R&D center and the development of the skills of the Sonangol research and technology teams in reservoir geology, process electrification, and photovoltaics.

“We look forward to joining forces with Sonangol in technology to promote innovation and low-carbon technologies for the energy industry in Angola, in particular to slash methane emissions and contribute to the diversification of Angola’s energy mix,” added Pouyanné.

TotalEnergies is not only working on developing projects in Angola but also elsewhere in the world, as confirmed by a final investment decision (FID) for a liquefied natural gas (LNG) project in Oman, which is expected to be powered by solar energy and serve as the first LNG bunkering hub in the Middle East.