Angola in offshore oil project

Angola and French oil giant Total formally launched a major new offshore oil project on Saturday to aid an economy that plunged into crisis following oil price dips in 2014.

Project Kaombo, located in the Atlantic ocean 250km from the capital Luanda, is Angola’s most significant offshore venture and cost $16bn (R229bn).

Two boats, each more than 300m long, will pump crude from six subsea fields spread over an area of 800km² – the same surface area as Paris.

A record-breaking 300kmlong network of pipes has been built 2,000m down to bring up the hydrocarbons.

The first of the two new vessels produced oil for the first time in July and will be joined by its sister ship in mid-2019.

The infrastructure will produce 230,000 barrels a day once fully operational, equivalent to 15% of the country’s current production. Total has led the project in partnership with Angolan state oil company Sonangol, SSI (a joint venture between Sonangol and China’s Sinopec), US oil major Esso and Portugal’s Galp.

Total produces 40% of crude pumped in Angola, which is sub-saharan Africa’s second largest producer behind Nigeria.

“We will maintain our production levels in the coming years,” Total CEO Patrick Pouyanne said.

“There is a positive dynamic with the heightened petrol price and the desire of the Angolan government to back the industry which is welcome.”

“The government is committed to the level not dipping during its term in office,” oil minister Diamantino Azevedo said. –