French oil giant Total will proceed with the development of the deepwater Kaombo block, offshore Angola.
According to Reuters, the company’s CEO Christophe de Margerie said that the company has managed to cut the project investment cost from $20 billion to $16 billion, and was near the final investment decision.
The final investment decision could be made as early as Monday morning, Reuters has reported citing a source familiar with the matter.
The Kaombo development is located in the Block 32 where Total is the operator with a 30% share. The other partners are Sonangol (20%), China Sonangol Petroleum (20%), Exxon (15%), Marathon Oil (10%) and Galp (5%).
Plans call for the production of several oil deposits dispersed among the Gindungo, Gengibre, Canela, Mostarda, Louro, Salsa and Caril fields in the central and southeastern sections of the block, in water depths of 1,500 m.
According to information on Total’s website, the reservoirs will be linked to two Floating Production, Storage and Offloading (FPSO) vessels. Each FPSO will have a capacity of 100,000 barrels per day.