TotalEnergies plans to continue pressing ahead with short-cycle projects in Angola but also add a new hub on the Cameia-Golfhino finds.
Patrick Pouyanné, speaking during the company’s strategy and outlook presentation, highlighted the attractiveness of Angola’s role in Total’s portfolio.
The company aims to take a final investment decision on the new Angola hub in the beginning of 2024, Pouyanné said. While the 70,000 barrel per day project will be smaller than some of its other Angola works, it is an attractive investment option. “It will deliver $500 million of cash flow per year,” the Total head said, based on oil at $50 per barrel.
It will locate the new hub on Blocks 20 and 21, with the aim of “leveraging synergies with operations in Angola”, the company said. Cameia-Golfinho should deliver first oil in 2026.
Block 17 in Angola has been a mainstay of Total’s production and this is set to continue, Pouyanné said. This year, based on $90 per barrel oil, the asset will provide $2bn of cash flow. Total is investing to extend the life of the four FPSOs on the licence.
The company has a number of short-cycle projects, many of them in Angola, with capex of less than $4 per barrel. “There’s a lot of value creation when you can add additional reserves in the deepwater on existing platforms or FPSOs,” he said.
In Namibia, Total made a major discovery in early 2022. “We are working on appraising Namibia, with only one well. There’s been a lot of excitement but I like to see appraisal coming. It does seem to be a very large discovery – or even giant.”
Junior partner Africa Oil had recently guided that appraisal on the Venus find would come in December. Total suggested that it now expected appraisal and testing in early 2023.