BP Inks Deals to Further Exploration, Development in Angola

BP is one step closer to a final investment decision on its Platina Field development located offshore Angola, after signing several Memorandums of Understanding with Sonangol on Monday in Luanda. The two companies agreed to progress to the final investment decision development of the Platina Field, as well as extend the production license for the Greater Plutonio project located in deepwater Block 18 until 2032.

Though still subject to government approval, the deal would see Sonangol taking an 8 percent equity interest in the block and would enable later life production on the field by BP.

“The signing of these agreements represents an important milestone in our relationship with Sonangol. It is a major step towards new investments for BP’s business in Angola, extending production from Greater Plutonio and boosting the nation’s oil output,” said Bob Dudley, chief executive of BP, in a company press release.

Additional agreements were also signed on Monday — to enter discussions on financing and construction of a planned terminal and storage facility at Barra do Dande and another to progress discussions on exploration activities planned for Blocks 31 and 19, new discussions on Blocks 46 and 57 and to explore further options for development of Block 18/15.

“These agreements are a positive sign of the work being done by Sonangol and the Angolan government to generate more investment in our oil industry and take us a big step closer toward increasing production from Block 18,” said Carlos Saturnino, CEO of Sonangol. “BP has been a key partner for Sonangol and Angola for many years, having contributed to the development of the oil and gas industry through its operated and partner-operated blocks, and we look forward to continuing to work together in the years to come.”

FID on the Platina field, discovered in 1999, is expected in the second quarter of 2019 and first oil in late 2021/early 2022. The field is to be developed as a subsea tie-back to the existing Greater Plutonio floating, production, storage and offloading vessel, according to the press release.