A Total SA-led consortium signed an agreement with Angola's National Oil, Gas and Biofuels Agency and state-owned Sonangol EP to extend all of their production licenses for Block 17 offshore Angola till 2045, according to a Dec. 16 news release.
As part of the deal, Sonangol will take a 5% stake in Block 17 on the effective date, as well as an additional 5% stake in 2036. In addition, the consortium will pay some production bonuses to the government of Angola overthe duration of the license and spend $20 million for social programs, the release said.
Block 17 is 150 kilometers off the coast of Angola in water depths ranging from 600 meters to 1,400 meters. It produces 440,000 barrels of oil equivalent per day, and Total said that more than 1 billion barrels are yet to be produced.
Following the deal, ownership of the Block 17 consortium will consist of Total, as operator, with a 38% stake alongside partners Equinor ASA, Exxon Mobil Corp., BP PLC and Sonangol with interests of 22.16%, 19%, 15.84% and 5%, respectively.
Financial details were not disclosed.