Total Acquires Interest in Two Offshore Licenses in Angola

   By Cristina Roca 
 

Total SA (FP.FR) said Monday that it has bought stakes two new offshore licenses in Angola.

The French energy major said that it will pay Angola's Sonangol $400 million at closing for stakes in two blocks offshore Luanda, plus $100 million at a final investment decision, as well as "some additional payments along the life of the project depending on production and crude-oil price for a maximum cumulative amount capped at $250 million."

Per the agreement, Total will hold a 50% working interest in Block 20/11 and an 80% working interest in Block 21/09, and will become operator of the two licenses before setting up an operator company with Sonangol three years after start up, it said.

The wells drilled there so far have produced four discoveries, and Total and its partners will create a development hub as well as explore for additional potential resources, the company said.

Separately on Monday, Total said that a consortium of which it is the operator has renewed all its production licenses in Angola through 2045.

Write to Cristina Roca at [e-mail]; @_cristinaroca

(END) Dow Jones Newswires

December 16, 2019 11:41 ET (16:41 GMT)

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