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Tuesday 20th March 2018

Angola and French Oil Giant Total Launch an Offshore Project

Business

7Dnews London

Sat, 10 Nov 2018 19:40 GMT

Angola and French oil company Total have launched a major offshore oil project in a bid to revive the country's economy that have been hit hard since the oil price deteriorated in 2014, reports Reuter.

The Kaumbo project, in the Atlantic Ocean, set at 250 kilometers from the capital Luanda, is estimated at 16-billion-euro.

Two ships, each 300 meters long, will pump oil from six offshore fields scattered in an area of 800 square kilometers, equivalent to the area of the French capital Paris.

The giant French company has delivered 300 kilometers of pipes to a depth of two kilometers to extract oil from under the sea.

The Kaumbo ship has already started oil extraction in July. The project could produce 230,000 barrels of oil per day (bpd), equivalent to 15 percent of Angola's current production.

Total already produces 40 percent of Angola's second largest crude oil in sub-Saharan Africa after Nigeria.

"We will maintain our production rates in the years to come," said Patrick Boyan, chairman and chief executive of Total for reporters in Luanda.

"There is a positive dynamic with increasing oil prices and the desire of the Angolan government to support the sector."

Angola enjoyed significant development rates earlier this century thanks to the revenues of its oil sector.

But in 2014, with the huge collapse in oil prices, which accounts for 90 percent of Angola's exports and 70 percent of government revenues, the country's plunge into a major recession has negatively impacted the exchange rate of the national currency.

Angola is among the poorest countries in Africa, where nearly half the population lives below the poverty line.


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