BP shakes hands with Angola on further development plans

BP and Angola's state oil company expect to make the final investment decision on what will be the east African country's first new project in over five years.

On Monday in Luanda, BP and Sonangol agreed to extend the production licence to 2032 for the BP-operated Greater Plutonio project on the Block 18 of the Platina field, subject to government approval. Sonangol will also take an 8% equity interest in the block, which is 50-50% owned between BP and Sonangol Sinopec, Angola's joint venture with China's Sinpoec.

BP and Sonangol also agreed to try and come to a final investment decision in the second quarter of 2019, ahead of first oil being expected no later than the first quarter of 2022.

Sonangol chairman Carlos Saturnino and BP chief executive Bob Dudley also signed two further memorandums of understanding regarding potential further access and exploration offshore Angola and co-operation in a planned new products and crude terminal and storage facility in Angola.

Under one agreement, the pair agreed to further discuss other exploration activities in Blocks 31 and 18, to enter discussions for Blocks 46 and 47, and to explore options in Block 18/15.

The other MOU enables the pair to enter discussions regarding financing and construction of the planned terminal and storage facility at Barra do Dande in Bengo province, which is roughly 30 kilometres north of Luanda.

BP's Angolan business, which has interest in six offshore deep and ultra-deepwater blocks, produced an average 211,000 barrels of oil per day net in 2017.