TOTAL and its joint venture partners will spend $16Billion, as Capital Expenditure cost on the Kaombo Ultradeepwater project off Angola. The fields are planned to come online by 2017. The French major congratulates itself for shaving off $4billion from the invoice.
The Kaombo project involves developing six of the 12 discoveries already made on Block 32. Gengibre, Gindungo, Caril, Canela, Mostarda and Louro are located in in water depths ranging from 1,400 to 1,900 meters, covering an area of 800 km2 in the central and southeast part of the block.
The money will be spent on 59 subsea wells, connected through around 300 km of subsea lines, to two floating production, storage and offloading (FPSO) vessels, each with a production capacity of 115,000 barrels per day. Production capacity is 230,000 barrels of oil per day. Estimated recoverable reserves are 650Million Barrels.
The two FPSOs will be based on conversions of very large crude carriers (VLCCs) into production units. Associated gas will be exported to the onshore Angola LNG plant. TOTAL’s president in charge of upstream says the cost was brought down through the company’s optimization of project design and contracting strategy. “Kaombo illustrates both the Group’s capital discipline and objective to reduce capex,” remarks Yves-Louis Darricarrère.
TOTAL operates Block 32 with a 30% stake. State hydrocarbon company Sonangol P&P holds 30%, Sonangol Sinopec International has 20%, while ExxonMobil and Galp Energia have 15% and 5% respectively.