Oil rig off
the Angolan coast
 
Paris, France — 29 May 2013

Total SA (FP), France’s largest oil producer, is selling a stake in an exploration block off the Angolan coast to Angolan state petroleum company Sonangol Pesquisa e Producao SA, as part of an asset-disposal programme.

Total will sell a 15% holding in the 15-06 zone operated by Eni SpA (ENI), according to a decree allowing the sale issued here on February 28 and seen by Bloomberg News this week.
“Talks are ongoing,” Total spokeswoman Anastasia Zhivulina said by phone here. She declined to give a price.

Total plans to complete US$15 billion to US$20 billion of asset disposals from 2012 to 2014. The company concluded the sale of a 10% interest in Angola’s Block 14 in the first quarter to Japan’s Inpex Corporation, and (1605) China Petrochemical Corporation bought Total’s 20% stake in OML 38 off Nigeria in November for about US$2.5 billion.

There was no immediate reply to an e-mail late yesterday seeking comment from Sonangol spokeswoman Nadiejda Santos.

Sonangol, which already has a 15% stake in the area 120km offshore in 1,000m of water, has the first option to buy a block partner’s share should it decide to sell. Eni and Sonangol Sinopec International Angola Lda. each hold 25%. Norway’s Statoil ASA (STL) and closely-held Falcon Oil Holding SA Angola control 5% each.

Angola probably produced about 1.8 million barrels a day in April, second in Africa to Nigeria, according to data compiled by Bloomberg.

Total is the largest crude producer in Angola. Block 17 where it has a 40% share, pumped 468,000 barrels a day in March, according to the Finance Ministry. The assembly of a floating production, storage and offloading vessel for the CLOV project in that zone is expected to start by the end of the year. It will be the first such vessel to be outfitted in Angola and the project is expected to produce 160,000 barrels a day after it starts next year, according to company documents.

A final investment decision is planned this year on the Kaombo project in Block 32. The Lianzi project in a zone between Angola and the Republic of Congo will be developed with a link to the Benguela-Belize-Lobito-Tomboco platform in Block 14, the company said. Production is expected to start in 2015 and Total has a 27% share.

Source: Bloomberg News. For more information, click here.