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Additionally, it said, TotalEnergies and its part- extreme importance for the economy of Angola
ners will drill five new wells in waters ranging and for all its citizens,” he stated.
from 1,100 to 1,400 metres deep. TotalEnergies holds a 38% stake in Block 17
Taking these steps will help sustain output and serves as operator of the licence area. The
levels at 30,000 barrels per day (bpd), it reported. remaining equity in the site is split between
Olivier Jouny, the managing director of subsidiaries of Equinor (Norway), with 22.16%;
TotalEnergies Angola, said that CLOV Phase ExxonMobil (US), with 19%; BP (UK), with
3 would be the first project to benefit from the 15.84%; and Sonangol, the national oil company
company’s effort to standardise the types of (NOC) of Angola, with 5%. The partners have
subsea equipment used at Block 17. This stand- installed four FPSOs at the block – Dalia, Giras-
ardisation, along with the adoption of an “inno- sol and Pazflor, as well as CLOV. ™
vative” contractual and engineering structure,
helps make development projects easier and
cheaper to execute, he commented.
“This development will maximise the use of
the existing CLOV infrastructure, allowing the
production of oil at less cost and with less carbon
intensity, in line with TotalEnergies’ strategy,”
he said. The project also “opens a new cycle [at]
Block 17 in which the standardisation of subsea
equipment for future developments will bring
about a cost reduction of around 20% and could
generate opportunities to maintain production
in other FPSOs,” he added.
Meanwhile, ANPG’s chairman Paulino
Jerónimo said he expected the FID to benefit
Angola and its oil industry by helping to sustain
crude production levels and optimise the use of
existing resources. “The investment by TotalEn-
ergies and its partners for the development of
national oil resources is not only important but
welcome, since the oil sector continues to be of CLOV is a cluster of four oilfields at the offshore Block 17 (Image: TotalEnergies)

Scirocco to sell 25% stake in

Ruvuma PSA to Wentworth

TANZANIA AIM-LISTED Scirocco Energy announced on 3) deferred consideration worth up to $8mn in
June 13 that it had arranged to sell its 25% stake the form of a 25% net share of revenues from
in the Ruvuma block in southern Tanzania to the time at which gas from Ruvuma starts being
UK-based Wentworth Resources. delivered to one or more buyers; and 4) contin-
In a statement, Scirocco explained that it had gent consideration of $2mn, payable at the time
signed a conditional binding agreement on the when gross production reaches or tops the level
divestment of the stake with Wentworth follow- of 50bn cubic feet (1.416bn cubic metres).
ing the completion of a formal sales process. Additionally, the statement said, Wentworth
This agreement calls for the latter company to has agreed to compensate Scirocco by provid-
pay up to $16mn for the stake, a sum that “repre- ing the latter company with a loan of $6.25mn,
sents over 200% premium to Scirocco’s current enough to cover all cash calls under the Ruvuma
market capitalisation,” it said. JOA between January 1, 2022, and the finalisa-
Under this agreement, the statement noted, tion of the divestment transaction.
Wentworth will pay for the stake in several Scirocco will be able to draw the first $3mn of
instalments. the credit without paying any interest, the state-
These instalments will include: 1) initial ment said, but any further draws beyond this
consideration of $3mn, payable upon comple- level will carry an interest rate of 7% per year,
tion of the transaction; 2) additional considera- until Tanzania’s Ministry of Energy approves the
tion of $3mn, payable upon the taking of a final security offered for the loan. Scirocco expects to
investment decision (FID) by the parties to the present the deal to its shareholders for approval
Ruvuma production-sharing agreement (PSA) at a general meeting on June 29, the statement
or joint operating agreement (JOA), as relevant; said.

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