Deals this week: Sonangol, Pemex, Chrysaor

21 December 2018 (Last Updated December 20th, 2018 20:11)

Sonangol and BP have agreed to collaborate on the development of the Platina field in Block 18 offshore Angola, South Africa.

Sonangol and BP have agreed to collaborate on the development of the Platina field in Block 18 offshore Angola, South Africa.

The Platina field will be developed as a tieback to the existing Greater Plutonio floating production, storage and offloading vessel (FPSO). The final investment decision on the development is due in the second quarter of 2019. The field is anticipated to achieve first production by early-2022.

The co-development of the field will enable Sonangol and BP to deliver the best production capabilities for Angola.

Sonangol is a petroleum and natural gas production company based in Angola, while BP is a UK oil and gas company.

Petroleos Mexicanos (Pemex), the state-owned petroleum company of Mexico, has announced plans to invest Mex$464.6bn ($23bn) to increase its production output by 50% by 2025.

Pemex plans to invest Mex$211bn ($10.4bn) in exploration and production activities in 2019. The company will focus on onshore and shallow water developments instead of deepwater development.

“The co-development of the field will enable Sonangol and BP to deliver the best production capabilities for Angola.”

The investment plan will help Pemex in increasing its current daily production capacity of 1.730 million barrels of oil to 2.624 million barrels by 2024.

PTT Exploration and Production (PTTEP) has won the development bid for two concessions namely Erawan and Bonkot in the Gulf of Thailand.

PTTEP will own a 60% interest in the Erawan concession, while Mubadala will own the remaining 40%. The Bonkot concession will be solely owned by PTTEP.

Estimated to have a combined production capacity of 2.1 billion cubic feet a day, the concessions are expected to contribute 68% (Erawan) and 70% (Bonkot) of production profits to the Thai Government.

PTTEP is a state-owned company of Thailand.

Chrysaor is expected to engage in talks to acquire Chevron’s oil and gas assets located in the North Sea, UK, worth more than $2.5bn.

Chevron’s divestment plan includes various offshore fields in the North Sea, including Clair, Alba, Alder, Captain, Elgin/Franklin, Erskine, and Jade.

The divestment of these ageing assets will enable Chevron to focus on its higher yielding assets in the Permian Basin, Texas; and the Tengiz field in Kazakhstan.

Chrysaor is a UK-based exploration and production company, while Chevron is a US-based energy firm.