Petroleum Africa
Find us on: 
Wednesday, April 16, 2014
Just a short time after saying a decision on a mega project in Angola would be coming soon, France’s Total reported it was moving forward on the Kaombo oil project on Block 32. The decision to invest in the ultra-deep water project has been delayed repeatedly because of the cost. The current price tag of $16 billion is $4 billion down from previous price tag.
“With the launch of Kaombo, the upcoming start-up of CLOV and three exploration wells planned in the Kwanza basin this year, Angola remains a priority country for Total,” Yves-Louis Darricarrere, Total’s president for upstream, said in a statement. “Total has significantly optimized the project’s design and contracting strategy in recent months. Kaombo illustrates both the group’s capital discipline and objective to reduce capex,”
The company decided to build its two 115,000 bpd FPSO units by converting two VLCCs, instead of building them from scratch. While converted vessels have a shorter lifespan, the cost savings equals about $2 billion. Another bit of cost savings came with an agreement with the government of Angola to cut local man hours as the rates are more expensive in Angola than elsewhere.
One of the first contracts for the Kaombo development has been awarded to Aker Solutions. The Norwegian service firs won the $2.4 billion contract to provide a subsea production system for the Kaombo. The contract will see Aker deliver 20 subsea manifolds and 65 vertical subsea wellsets. The order also includes associated controls as well as work-over and tie-in systems. The first deliveries are scheduled to start in Q2 2015.
Aker Executive Chairman Øyvind Eriksen said in a company statement: “This is a landmark contract and further strengthens an important relationship with a key partner. It’s a significant commercial achievement for our subsea business as well as an important strategic development in our expansion in Angola and the broader region.”
" alt="First LNG Realized at the Greater Tortue Ahmeyim Project">
" alt="United Energy Acquires Western Desert Producer APEX">
" alt="Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG">
" alt="ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System">
" alt="Tullow Highlights 2025 Operational Plans in Ghana">
" alt="TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years">
" alt="Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession">
" alt="Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market">
