CEO Morning Brief

Petronas, Partners Reach Final Investment Decision for Kaminho Project Off Angola

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Publish date: Wed, 22 May 2024, 11:31 AM
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TheEdge CEO Morning Brief
Petronas and its partners have reached the final investment decision for the so-called Kaminho project to develop the Cameia and Golfinho fields offshore Angola whereby Petronas will hold a 40% stake in the block, French energy company TotalEnergies 40% and African oil producer Sonangol the remaining 20%.

KUALA LUMPUR (May 21): National oil and gas (O&G) corporation Petroliam Nasional Bhd (Petronas) and its partners have reached the final investment decision for the so-called Kaminho project to develop the Cameia and Golfinho fields offshore Angola.

The fields are located in the Block 20/11, located 100km from Angola’s coasts, Petronas said in a statement. Petronas holds a 40% stake in the block while French energy company TotalEnergies will operate the block with 40% interests and African oil producer Sonangol has the remaining 20%.

Financial details of the deepwater project were not disclosed.

A final investment decision in the O&G industry typically takes years to make and is a sign that a project will proceed as proposed, following extensive studies and planning. The project owners will then sanction the budget, allowing contractors to purchase materials as well as equipment to begin work.

The project involves the conversion of a very large crude carrier into a floating production storage and offloading unit, which will be connected to the subsea production system, Petronas said.

The production startup is expected to commence in 2028, with a plateau of 70,000 barrels of oil per day, TotalEnergies said in a separate statement.

The Kaminho project fits TotalEnergies’ investment criteria — breakeven under US$30 (RM140.47) per barrel and carbon intensity of 16kg of carbon dioxide per barrel of oil equivalent — and would be the first-ever development in the Kwanza basin, said Patrick Pouyanné, chairman and CEO of TotalEnergies.

The final investment decision (FID) is in line with Petronas’ continuous efforts to strengthen its international portfolio and presence in Africa, said president and group CEO Tan Sri Tengku Muhammad Taufik.

“Reaching the FID for this development in the Kwanza basin further demonstrates our steadfast commitment to deliver much-needed reliable energy to our customers and sustainable long-term value to our stakeholders,” Muhammad Taufik said.

The decision is also a “significant milestone” in realising Petronas’ investment in the deepwater Kwanza basin in Angola, said its executive vice president and CEO of upstream Datuk Adif Zulkifli. “We will work closely with our partners and host authority to seamlessly execute the project,” he added.

Source: TheEdge - 22 May 2024

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