Page 8 - AfrOil Week 40 2021

AfrOil INVESTMENT AfrOil

Sonangol announced earlier this year that it upstream performance, in line with the compa-
intended to sell up to 8.28% of Block 18, 10% of ny’s business development strategy.
Block 15/06, 15-20% of Blocks 3/05 and 4/05, However, a banking source told Reuters ear-
30-65% of Block 5/06 and 30-70% of Blocks 23, lier this year that mounting arrears might be one
27 and 31. All eight of these blocks are located of the factors underlying the decision to sell off
in Angola’s offshore zone, in depths ranging stakes in a number of offshore assets. Non-pay-
from shallow-water to ultra-deepwater. Two of ment of about $1bn in cash calls and other sums
these sites – namely, Blocks 3/05 and 4/05 – are owed to Western partners “has boosted Sonan-
already in production. gol’s process of divestment in some of these [off-
The sale is designed to improve Sonangol’s shore] blocks,” said the source. ™

CNOOC still waiting to make FID

on Lake Albert oil development

UGANDA CHINA National Offshore Oil Corp. The government has already acceded to one
(CNOOC), which is working with TotalEn- of these requests by building a 220-kV power
ergies (France) to develop several oil-bearing transmission line connecting Nkenda, Fort
blocks in western Uganda, is not yet ready to Portal and Kabaale, the source said. The new
make a final investment decision (FID) on the cable will deliver electricity to the oilfields and
Lake Albert oil development project, according surrounding areas, he stated.
to Mariam Nampeera Mbowa, the deputy gen- TotalEnergies has already showed signals
eral manager of TotalEnergies E&P Uganda. that it will fund the project, which carries a
“We need to have the FIDs of all the part- multi-billlion dollar price tag. Thus far, though,
ners. We are still waiting on our joint partner the French company has not yet made a public
CNOOC to get approval through their board,” announcement to this efffect.
she said. CNOOC and its partners are on track to pro-
The Chinese company has not commented duce more than 250,000 barrels per day (bpd) of
publicly on the matter, but a source close to the crude oil from the Kingfisher and Tilenga fields.
French major and to Uganda’s Energy Ministry Most of these volumes, or 216,000 bpd, will
told URN earlier this week that the wait for the be exported via the roughly East Africa Crude
FID had raised eyebrows in Kampala. CNOOC Oil Pipeline (EACOP). where TotalEnergies
appears to be “foot-dragging,” as it has asked owns a 72% share, UNOC 15%, Tanzania Petro-
Ugandan authorities to meet certain conditions leum Development Corp. (TPDC) 5% and
before formally con=mmitting to the project. CNOOC 8%. ™

The Chinese company is leading development at the Kingfisher oilfield (Photo: CNOOC)

P8 www. NEWSBASE .com Week 40 06•October•2021