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AfrOil INVESTMENT AfrOil

Total may drop stake in Angola’s Block 14

ANGOLA FRANCE’S Total is reportedly looking into pandemic earlier this year.
unloading at least one of its Angolan assets. Total will also be in a better position to
Industry sources told Reuters last week that achieve its decarbonisation goals if it sells some
the French major might be gearing up to sell of its Angolan assets. The company has pledged
its 20% stake in Block 14 offshore Angola. The to become carbon-neutral by 2050, and offshore
company might be able to earn about $300mn oilfields are an obstacle to that ambition.
from the sale of this asset, they said. They did not They could also complicate the company’s
name any potential buyers. efforts to keep crude production levels steady
As of press time, Total had not commented until 2025. Analysts from HSBC have speculated
on its plans for Block 14. The French company that Total may have to sell off the equivalent of
is the largest oil producer in Angola, and its 200,000 bpd in production per year in order to
departure from the project could lead other hit its output targets over the next decade. ™
investors to follow suit and quit other Angolan
oil projects.
Block 14 is home to the Kuito and Tom-
bua-Landana oilfields, as well as the cluster of
fields that makes up the BBLT project. It yielded
around 40,000 barrels of oil equivalent per day
(boepd) last year. Chevron (US) is serving as
operator of Block 14.
According to Reuters’ sources, Total is think-
ing about dropping Block 14 from its Angolan
portfolio so that it can focus on larger and more
profitable and less geologically complex fields in
that country. Doing so would help the French
major trim its operational costs, thereby freeing
up money to pay down debts. The company’s
debt burden has increased considerably since
the advent of the coronavirus (COVID-19) Block 14 is home to multiple oilfields (Image: Chevron)

Impact Oil & Gas signs farm-out deal

with Shell for Transkei & Algoa block

SOUTH AFRICA AFRICA-FOCUSED Impact Oil & Gas The parties have not said when they expect
reported last week that its wholly owned subsid- to execute the farm-out agreement. Once they
iary Impact Africa had arranged to transfer part do, they will be able to launch a new exploration
of its holdings in the offshore Transkei & Algoa programme that will involve the collection of
licence area to BG International, an affiliate of more than 6,000 square km of 3D seismic data
Royal Dutch Shell (UK/Netherlands). from Transkei & Algoa “during the first avail-
In a statement, UK-based Impact Oil & Gas able seismic window following completion of
said that its subsidiary had signed a farm-out the transaction,” Impact Oil & Gas said. “This
agreement with BG International. Under the window is expected to be in the first quarter of
agreement, it explained, the Shell subsidiary will 2022,” it added.
take a 50% stake in Transkei & Algoa and will The Algoa section of Impact Africa’s licence
also serve as operator of the project. area lies just to the east of Block 11B/12B, a site
Additionally, BG International will have the operated by France’s Total in the Outeniqua
option to buy another 5% stake provided that Basin. Total has discovered sizeable gas con-
the partners decide to move ahead into the third densate reserves at the Brulpadda and Luiperd
renewal period of their licence. fields at the block.
They are likely to take that step in or around Algoa is in the South Outeniqua Basin, while
2024, Impact Oil & Gas explained in its Transkei is to the north-east in the Natal Trough
statement. Basin, the company noted.

Week 45 11•November•2020 www. NEWSBASE .com P11