Total to invest in Angola's ultra-deep Kaombo oilfield
French oil giant Total is to invest in Angola's Kaombo project after finding ways to cut costs of extracting ultra-deep offshore oil by a fifth, the firm announced on Monday.
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Total and its partners have worked out how to slash 2.9 billion euros off the capital cost of Kaombo, reducing it to 11.5 billion euros and production is to begin in 2017, a company statement said.
The field, which is about 260 kilometres offshore where the water is 1,400-1,900 metres deep, has estimated reserves of 650 million barrels and should produce 230,000 barrels per day, Total said.
The company is set to start producing oil at the Cravo, Lirio, Orquidea and Violeta field and has three exploration wells planned in the Kwanza basin this year and claims to already be "the country's leading
oil operator".
It promises local involvement in the projects.
"Over 14 million man-hours of fabrication and construction works [for Kaombo] will be performed locally in Angolan yards which will be used for equipment fabrication and assembly," Total's statement said.
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