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Total has signed an agreement with Angola’s state-owned company Sonangol to acquire interests in two blocks in the Kwanza Basin, offshore Angola.

The sale and purchase agreement includes Blocks 20/11 and 21/09 offshore Luanda. Water depths of the Block 20/11 range from 300m to 1,700m.

Total will pay $400m to Sonangol upon completion of the transaction. Another $100m will be added when a final investment decision (FID) is made. The company further noted that the agreement would enable $250m in additional payments through the life of the project based on production levels and crude oil prices.

Total chairman and CEO Patrick Pouyanné said: “We are very pleased to demonstrate once again our pioneer spirit and our commitment to continue developing Angola’s energy sector by becoming the first company to undertake a development in the Kwanza Basin.”

Total will hold a 50% working interest in Block 20/11. Sonangol will own 20% and the remaining 30% will be held by BP. Meanwhile, Total will own an 80% working interest along with Sonangol’s 20% in Block 21/09. Water depths of this block range from 1,600m to 1,800m.

Three years after the production start-up of the two blocks, Total will put in place an operating company together with Sonangol. Prior to this, the company will become operator of their development. Until now, the wells drilled in the two blocks have produced the Cameia, Mavinga, Bicuar and Golfinho discoveries.

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By GlobalData

Along with its partners, Total aims to unlock the value of these prospects by creating a development hub and also plans to explore for additional potential resources in the blocks. The acquisition is subject to approvals from the competent authorities and other partners.