France-based Total and its partners have made final investment decision to proceed with the $1.2bn Zinia 2 deep development in Block 17 located 150km offshore Angola.
Image: An offshore oil rig in operation. Photo: courtesy of num_skyman/Freedigitalphotos.net.
Said to be the first of several possible short-cycle developments on Block 17, the Zinia 2 project is expected to have a production capacity of 40,000 barrels per day (b/d).
The development, which will comprise nine wells in water depths ranging from 600 to 1,200m, will be tied back to the Pazflor floating storage, production and offloading (FPSO).
Total Exploration & Production president Arnaud Breuillac said: “Zinia 2 opens a new chapter in the history of Block 17. This project will allow to extend the profitability of this prolific block, with over 2.6 billion barrels already produced.
“Thanks to the favorable fiscal framework introduced by the Angolan authorities for satellite developments, other projects similar to Zinia 2 are currently under consideration on Block 17.
“The project is also a good example of capex discipline and cost optimization: the work carried out to simplify the design while capturing deflation allowed the partners to cut the development costs by more than a half.”
Total said that that the block will unlock its full potential by connecting satellite reservoirs to the existing FPSO units.
The Block 17 is operated by Total with 40% interest. Other project partners include affiliates of Equinor with 23.33% stake, Exxon Mobil with 20% interest, and BP with 16.67% stake. Sonangol is the concessionaire of the licence.
Separately, Total and Angolan state oil company Sonangol have reached several agreements for new opportunities covering both upstream and downstream activities in Angola.
The firms have signed a risk service agreement for the Total-operated deepwater Block 48 exploration license.
Additionally, a framework agreement has been signed to jointly develop, though a joint venture between Total and Sonangol, a network of service stations in Angola, including petroleum product logistics and supply.