French energy giant Total and its partners recently approved a $6 billion deepwater petroleum project.
According to the Finance and Economics app, French energy giant Total (TTE.US) and its partners recently approved a $6 billion deepwater petroleum project, located about 100 kilometers (62 miles) off the coast of Angola, marking a further commitment by Total to African countries. The project, named Kaombo, plans to convert a large crude oil transport ship into a floating production, storage, and unloading ship (FPSO).
It is reported that an FPSO is an offshore oil production facility that not only produces oil but also stores and unloads it, typically used for deep-sea or offshore oil field development. This type of ship is equipped with production equipment, storage tanks, and unloading systems, capable of extracting crude oil from subsea oil wells, storing it after initial processing, and ultimately unloading it to shore via tanker and other transportation methods.
In a statement released on Tuesday, Total announced that the goal is to begin petroleum extraction in the Cameia and Golfinho oil fields of Block 20/11 from 2028.
Total CEO Patrick Pouyanne said the Kaminho platform is expected to produce 70,000 barrels of oil per day and this will be Total's seventh FPSO project in Angola and the first development project in the wider Zhanza Basin.
It is understood that Angola was once the largest oil-producing country in Africa, but its oil production has declined significantly over the past decade due to insufficient investment in aging oil fields. The implementation of the Kaombo project will help Angola avoid further reduction in production.
In January, Angolan Minister of Mineral Resources Diamantino Azevedo said the country withdrew from OPEC last December because OPEC quotas limited Angola's plan to stabilize crude oil production at over 1 million barrels per day.
In this project, Total, as the operator, holds 40% of Block equity. Malaysia's national oil company, Petroliam Nasional Bhd., and Angola's national oil company, Sonangol, each hold the remaining 40% and 20% equity, respectively.
In addition, Italian engineering company Saipem SpA announced in another statement on Tuesday that it has secured a $3.7 billion contract to provide FPSO, subsea equipment, and maintenance services for the Kaombo project.
This project is not only significant for Total's global energy layout but also brings new opportunities for Angola's energy development and economic recovery. As the project progresses, it is expected to create job opportunities, promote the development of related industries, and support Angola's energy security and economic diversification.