French oil major Total is reportedly looking to sell stakes in a number of oilfields in Angola where production is generally ‘more complex and expensive’ compared to other basins.
The latest news comes as a sign of an ‘expected wave of divestments’ by big energy majors from the country, Reuters reported citing industry sources.
Total is expected to raise about $300m from the sale of its 20% stake in Block 14 offshore Angola.
The offshore block includes the Tombua-Landana and Kuito fields, as well as a ‘cluster of fields’ that make up the BBLT project, according to sources.
Total and rivals such as BP, Chevron and ExxonMobil aim to sell billions of dollars worth of oil and gas assets across the world in the future years to lower debt that ‘ballooned’ following the crash in oil prices as a result of the Covid-19 crisis.
Unlike other oil majors, Total ‘does not provide a clear divestment target’.
However, HSBC analysts estimate that Total will sell about 200,000bpd of production over the next ten years to keep its production target unchanged until 2025.
In December last year, Total signed an agreement with Angola’s state-owned company Sonangol to acquire interests in two blocks in the Kwanza Basin, offshore Angola.
In May 2018, Total and its partners initiated the development of Zinia 2 deep offshore project in Block 17, located 150km offshore Angola.