Economy

Angola’s oil revival depends heavily on foreign influence

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Sunday 09, June 2019 BY Kuda Muzoriwa

Totsa Total Oil Trading, Total’s trading unit, together with Trafigura were awarded a 12-month contract to supply fuel to Angola.

(Bloomberg) --Total is positioning itself as Angola’s top foreign operator in the country’s efforts to revive oil production from the lowest level in more than a decade.

Patrick Pouyanne, Total’s Chief Executive Officer, said that the French energy giant could one day operate about 40 per cent of the nation’s production and is considering an additional investment of as much as $10 billion.

 “Angola is one of the most important countries for oil and gas in the continent,” Pouyanne.

According to data from Sonangol, in 2018  Angola’s oil output sank to 1.48 million barrels a day, the lowest level in more than a decade following years of under-investment in new projects.

Wood Mackenzie said that the French oil major produced an average of 275,100 barrels of oil equivalent a day in Angola in 2018, 14 per cent more than BP produced in the country.

Pouyanne added that he expects Total’s output in Angola to reach 650,000 barrels a day, without giving a timeframe.

In May, Total loaded the first cargo of Mostarda crude from the Kaombo Sul floating production, storage and offloading vessel. Along with another vessel, the Kaombo Norte, the ultra-deepwater project has an estimated production capacity of 230,000 barrels of oil equivalent a day, according to operator Total.

Other oil majors have also been in negotiations over Angolan blocks and Eni has made other recent discoveries.

Angola plans to put up more blocks for sale in October.

“We will be taking a very active interest in those licencing rounds,” said Stephen Willis, the Regional President for BP Angola.

Exxon Mobil said that the government has made upstream, commercial terms more attractive for operators.

“We are looking forward to building on the existing collaboration to promote further investment into Angola,” said Hunter Farris, the Senior Vice president of Upstream deep-water at Exxon Mobil.

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