ANGOLA: In a significant move for Angola’s oil and gas sector, TotalEnergies, alongside partners Sonangol (20 per cent) and Petronas (40 per cent), have announced a final investment decision (FID) for the Kaminho deepwater project.
The project signifies the first large-scale development in the Kwanza basin, located 100 kilometres offshore Angola in 1,700 metres of water depth.
Diamantino de Azevedo, Minister of Mineral Resources, Oil & Gas (MIREMPET), highlighted the importance of the collaboration, stating: “This partnership is for us of extreme importance, as it creates a joint operating entity between Sonangol and TotalEnergies in [the] 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.”
The Kaminho project prioritises environmental responsibility.
It will feature an all-electric floating production storage and offloading (FPSO) unit, converted from a very large crude carrier (VLCC).
This design minimises greenhouse gas emissions and eliminates routine flaring by fully reinjecting associated gas back into the reservoirs.
Production is expected to commence in 2028, with a projected plateau of 70,000 barrels of oil per day.
TotalEnergies’ CEO Patrick Pouyanné expressed his appreciation for the collaboration with key partners Sonangol and Petronas and acknowledged the crucial support from 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 project is anticipated to generate over 10 million man-hours of work in Angola, with a focus on offshore operations and local yard construction.
This significant investment will provide a welcome boost to the Angolan economy.
Further solidifying the partnership, TotalEnergies and Sonangol EP signed a Memorandum of Understanding (MoU) to collaborate on research and development (R&D) efforts.
The MoU focuses on decarbonisation initiatives within the oil and gas industry, particularly methane emission reduction and the exploration of renewable energies.
Paulino Jerónimo, head of Angola’s National Oil and Gas Agency (ANPG), hailed the Kaminho project as a breakthrough, emphasising its role in opening new oil exploration areas in Angola’s Kwanza basin.
Gaspar Martins, CEO of Sonangol, echoed the positive sentiment: “The Kaminho project signifies a commitment to increasing Angola’s national oil and gas production, generating significant revenue for the country.”
Tan Sri Tengku Muhammad Taufik, Petronas President and Group CEO, concluded by underscoring the project’s alignment with Petronas’ goals: “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.”
The FID follows a meeting on 20 May 2024 between Patrick Pouyanné, Chairman and CEO of TotalEnergies, and Angolan officials, including President João Lourenço, Minister of Mineral Resources, Oil & Gas (MIREMPET) Diamantino Azevedo, Chairman and CEO of ANPG Paulino Jerónimo, and Chairman and CEO of Sonangol Gaspar Martins.