By Ebi Kesiena
TotalEnergies SE, along with its partners, has approved a $6 billion deepwater oil project located approximately 100 kilometers (62 miles) off the coast of Angola, reaffirming the French energy giant’s commitment to the African nation.
According to a statement from TotalEnergies on Tuesday, the project, known as the Kaminho project, involves converting a very large crude carrier into a floating production, storage, and offloading (FPSO) vessel. This initiative aims to start pumping oil by 2028 from the Cameia and Golfinho fields in Block 20/11.
Kaminho is projected to produce 70,000 barrels of oil per day at its peak. “This will become our seventh FPSO in the country and the first-ever development in the Kwanza basin,” stated TotalEnergies Chief Executive Officer Patrick Pouyanne.
Angola, once Africa’s largest oil producer, has seen its output decline significantly over the past decade due to insufficient investment in aging fields. The Kaminho project is expected to help the southern African nation mitigate further declines in production. Angola exited OPEC in December, as its quota limits hindered plans to stabilize crude output above 1 million barrels per day, according to Mineral Resources Minister Diamantino Azevedo.
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TotalEnergies serves as the operator of the project with a 40% interest. Malaysia’s Petroliam Nasional Bhd. (Petronas) and Angola’s Sonangol hold 40% and 20% of the block, respectively.
Italian engineering firm Saipem SpA has been awarded contracts worth $3.7 billion to provide the FPSO and subsea equipment for the project, as well as maintenance services. This significant contract underscores Saipem’s role in supporting the development of the Kaminho project and enhancing Angola’s oil production capabilities.
The Kaminho project represents a major investment in Angola’s energy sector, promising to boost the nation’s oil production and economic stability. As Angola works to rejuvenate its oil industry, projects like Kaminho are crucial for maintaining its position in the global energy market.