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French oil major TotalEnergies has chosen Angola over Nigeria for a $6 billion energy project. The oil giant is moving forward with the development of the Kaminho oil project, located 100 kilometres off the coast of Angola, following a final investment decision on the block, it announced on Tuesday.
The US$6 billion project involves developing two oil fields, Cameia and Golfinho, located in Block 20/11, according to a statement from Angola’s national hydrocarbon agency, ANPG.
TotalEnergies chief executive officer Patrick Pouyanne explained at the Africa CEO Forum in Kigali, Rwanda, that Angola offers a more stable policy framework, which is a critical consideration for businesses before initiating investments.
What he said: “You love to debate. There is always a new legislature in Nigeria about a new petroleum law. When you have such permanent debates, it’s difficult for investors looking for long-term structure to know what direction to go,”
“In reality, the Niger Delta is the most prolific part of West Africa. But if you look at what happened, because of these debates, there has not been a single exploration in Nigeria for 12 years.”
“We have countries that have perfectly integrated policies like Angola. So, we went to Angola and announced a very large US$6 billion project at the beginning of the week because their framework is stable. So we know where we go,” Pouyanne said.
Production start-up is expected in 2028, with a plateau of 70 000 barrels of oil per day, according to a statement from the French company.
TotalEnergies operates Block 20/11 with a 40 percent interest, while Malaysia’s Petronas holds another 40 percent, and Angola’s Sonangol has the remaining 20 percent. Angola, where TotalEnergies is the leading operator, produces 1,1 million barrels of oil per day, – Business Insider Africa
Bongani Ndlovu
Online Reporter