Total (NYSE: TOT) and Sonangol have taken the final investment decision to launch the Zinia 2 deep offshore development in Block 17, 150 km (93 miles) offshore Angola, the company said on May 28.
During an official visit to France by João Lourenço, the president of the Republic of Angola, Patrick Pouyanné, chairman and CEO of Total, and Carlos Saturnino, chairman of the board of directors of Sonangol, signed several agreements covering the group’s upstream and downstream activities in Angola.
The Zinia 2 project will have a production capacity of 40,000 barrels per day (bbl/d), sustaining Pazflor field production, on stream since 2011.
Zinia 2 is the first of several possible short-cycle developments on Block 17 that will unlock its full potential by connecting satellite reservoirs to the existing FPSO units.
“Zinia 2 opens a new chapter in the history of Block 17. This project will allow [us] to extend the profitability of this prolific block, with over 2.6 billion barrels already produced. Thanks to the favorable fiscal framework introduced by the Angolan authorities for satellite developments, other projects similar to Zinia 2 are currently under consideration on Block 17,” Arnaud Breuillac, president of Total Exploration & Production, said.
Zinia 2 comprises nine wells in water depths ranging from 600 m (1,968 ft) to 1,200 m (3,937 ft), tied back to the Pazflor FPSO with a budget of $1.2 billion.
Total operates Block 17 with a 40% interest, alongside affiliates of Equinor (NYSE: EQNR) (23.33%), ExxonMobil (NYSE: XOM) (20%), and BP (NYSE: BP) (16.67%). Sonangol is concessionaire. It has four FPSOs—Girassol, Dalia, Pazflor and CLOV. In 2017, its production averaged 600,000 bbl/d.
NuStar plans to load the shipment this weekend, following completion of the Cactus II pipeline system.
Crude inventories in the Permian Basin fell to 15 million barrels (MMbbl) in the week to Feb. 19, the lowest since October and down from a record 22 MMbbl in November. That glut had doubled in size from 11 MMbbl in June, according to the Genscape data.
A joint venture between Exxon Mobil, Plains All American and Lotus Midstream has agreed to build a new crude pipeline to connect the Permian Basin in West Texas to the Texas Gulf Coast.