Total farms in to Angolan deepwater blocks

On 16 December, Total announced a sale and purchase agreement with Angola's Sonangol to acquire a 50% stake in Block 20 and an 80% stake in Block 21. Total will pay Sonangol US$400 million at closing and a further US$100 million upon any future FID. The deepwater blocks hold over 2 billion barrels of oil and gas equivalent, discovered by Cobalt during the most successful exploration campaign in the pre-salt Kwanza Basin. Cobalt sold its stakes in the blocks to Sonangol in 2017 for a knock-down price and Sonangol has been looking for a new partner ever since. The consideration effectively reimburses Sonangol what it paid for the assets in 2017. Total will now pursue an oil hub development around Block 21 fields Cameia, Mavinga and Bicuar, and Golfino on Block 20 but there is considerable upside in the gassier fields in the north of Block 20, if a local gas market or export solution can be found.