TotalEnergies begins production from Angola’s Blocks 17 and 17/06, adding 60,000 Barrels Per Day

Global energy giant TotalEnergies has announced the successful commencement of production from two significant new projects in Angola’s deepwater Blocks 17 and 17/06. These strategic investments, the Begonia and Clov Phase 3 subsea satellite developments, are poised to collectively add 60,000 barrels of oil per day (bpd) to Angola’s output, reinforcing the nation’s crucial role in global energy supply and bolstering TotalEnergies’ upstream portfolio.

The start-up of these projects, leveraging existing infrastructure, highlights TotalEnergies’ commitment to efficient, low-cost, and low-emissions production in a region that has long been a cornerstone of its African operations. This move is not only vital for the French supermajor’s growth targets but also instrumental for Angola, an OPEC member, in its efforts to maintain crude oil production levels above the critical 1 million bpd mark.

Angola: A Golden Block in TotalEnergies’ Crown

TotalEnergies’ relationship with Angola stretches back decades, establishing the country as a pivotal hub for its deepwater expertise. The French company has been a leading operator in Angola since 1953, evolving with the nation’s oil and gas sector. At the heart of this enduring partnership lies Block 17, famously dubbed the “golden block” in the late 1990s and early 2000s. This moniker was earned through a series of colossal discoveries, including the Girassol, Dalia, Pazflor, and Clov fields, which transformed Angola into a major global oil producer.

These discoveries were not just significant in their size but also in their technological complexity, pushing the boundaries of deepwater exploration and production. The development of these fields required pioneering subsea technologies and the deployment of massive Floating Production, Storage and Offloading (FPSO) vessels, which act as offshore oil and gas processing facilities and storage tanks. TotalEnergies’ success in Block 17 cemented its reputation as a leader in complex deepwater projects, demonstrating its capacity to unlock hydrocarbon resources in challenging environments.

Block 17, where TotalEnergies operates with a 40% stake alongside partners Equinor (23.33%), ExxonMobil (20%), and BP (16.67%), continues to be a prolific asset. Its long production history and the availability of existing infrastructure make it an ideal candidate for tie-back developments, where smaller, newly discovered reserves are connected to existing processing facilities, thereby maximizing efficiency and minimizing new capital expenditure.

Block 17/06, while a more recent addition to TotalEnergies’ Angolan portfolio, represents a strategic extension of its deepwater capabilities. TotalEnergies operates this block with a 30% interest, alongside partners Sonangol P&P (30%), SSI (25%), Azinam (10%), and ACREP (5%). The synergies between Block 17 and 17/06 are now being fully realized with the Begonia project.

Technical Marvels: Subsea Satellites and FPSOs in Action

The success of deepwater oil production in Angola, and indeed globally, hinges on advanced subsea technology and the efficiency of FPSO vessels.

What are Subsea Satellites?

Subsea satellites are individual wells or small clusters of wells located on the seabed, typically in deepwater environments, that are connected back to a larger, existing production facility (like an FPSO) via flowlines and umbilical lines. Instead of building entirely new, costly platforms for each new discovery, these satellites allow operators to exploit smaller, geographically dispersed reservoirs by tying them back to established infrastructure. This approach significantly reduces capital expenditure, accelerates time to first oil, and minimizes the environmental footprint compared to standalone developments.

For Begonia and Clov Phase 3, the “subsea satellite” model is key. Begonia, a five-well subsea satellite, and Clov Phase 3, a four-well subsea scheme, exemplify this strategy. The wells are drilled and completed on the seabed, and the produced fluids (oil, gas, and water) are transported through subsea flowlines to the nearby FPSOs for processing.

The Role of FPSOs: Floating Production Hubs

Floating Production, Storage and Offloading (FPSO) vessels are essentially floating oil and gas production facilities. They are crucial for deepwater fields where fixed platforms are economically or technically unfeasible due to extreme water depths. An FPSO receives crude oil and natural gas from subsea wells, processes it, stores the treated oil, and then offloads it periodically onto shuttle tankers for transport to refineries. They also handle gas processing, water injection for reservoir pressure maintenance, and power generation for the entire offshore operation.

TotalEnergies operates several FPSOs in Angola, including the Pazflor FPSO and Clov FPSO. The brilliance of the Begonia and Clov Phase 3 developments lies in their ability to leverage the “spare capacity” of these existing FPSOs. This means the Pazflor and Clov vessels, which were designed with excess processing and storage capabilities, can now accommodate the additional production from the new satellite wells without requiring significant upgrades or new, costly floating facilities. This strategy is a prime example of capital efficiency in the oil and gas industry.

Begonia is particularly innovative as it represents Angola’s “first inter-block development.” This means that the wells for Begonia are located in Block 17/06, but their production is routed to the Pazflor FPSO, which is situated in the adjacent Block 17. This inter-block synergy allows for optimal resource utilization across concession boundaries, a complex feat requiring close collaboration between the block partners and the Angolan regulator.

TotalEnergies’ Strategic Imperative: Growth, Efficiency, and Lower Emissions

Nicolas Terraz, TotalEnergies’ President for Exploration & Production, emphasized that these are “low-cost and low-emissions” developments. This statement aligns with TotalEnergies’ broader strategy to selectively invest in projects that offer competitive costs and reduced environmental impact, even as the company navigates the global energy transition.

Low-Cost Developments

The “low-cost” aspect is primarily achieved through the tie-back strategy. By connecting new wells to existing FPSOs, TotalEnergies avoids the massive capital expenditure associated with building new standalone production facilities. This approach optimizes the return on investment, making even smaller, marginal discoveries economically viable. In a volatile oil price environment, such capital discipline is crucial for shareholder value.

Low-Emissions Production

The “low-emissions” claim, while always a point of scrutiny in the fossil fuel industry, refers to efforts to minimize the carbon footprint of the production process itself. For offshore operations, this typically involves:

• Reduced Flaring: Minimizing the burning of associated gas, which releases CO2 and methane. Modern facilities often reinject gas back into the reservoir or find ways to commercialize it.
• Energy Efficiency: Optimizing the energy consumption of the FPSO and subsea equipment, potentially through electrification or more efficient power generation onboard.
• Methane Leakage Reduction: Implementing robust programs to detect and repair methane leaks, a potent greenhouse gas.
• Operational Excellence: Streamlining operations to reduce downtime and improve overall energy intensity per barrel produced.

While the production of oil and gas inherently involves emissions, TotalEnergies’ focus on “low-emissions” developments reflects a broader industry trend towards more responsible production practices, even as the world transitions to cleaner energy sources. These projects contribute to TotalEnergies’ target of growing its upstream production by more than 3% in 2025, demonstrating that strategic investments in high-quality, efficient assets remain a core part of its business model.

Angola’s National Imperative: Sustaining Production and Economic Stability

For Angola, the start-up of Begonia and Clov Phase 3 is a significant national achievement. Paulino Jeronimo, chairman of ANPG, Angola’s National Agency for Oil, Gas and Biofuels, highlighted that these new projects are crucial for the country to “maintain its production levels above 1 million bpd.”

Oil as the Economic Backbone

Angola’s economy is heavily reliant on oil production, which accounts for the vast majority of its exports and government revenue. Maintaining stable production levels is therefore paramount for the country’s fiscal health, its ability to fund public services, and its overall economic stability. A sustained output above 1 million bpd provides a strong foundation for the national budget and allows for continued investment in diversification efforts.

The Role of ANPG

ANPG, established in 2019, is Angola’s national concessionaire and regulator for the oil, gas, and biofuels sector. Its mandate includes managing hydrocarbon resources, promoting exploration and production activities, and ensuring compliance with regulations. Paulino Jeronimo’s comments underscore ANPG’s commitment to fostering an attractive investment environment and supporting projects that bring new production online. The agency plays a critical role in facilitating partnerships between international oil companies (IOCs) and the national oil company, Sonangol, ensuring that national interests are served while attracting the necessary foreign investment and expertise.

Jeronimo’s statement that “Projects like these are extremely important as they prove the innovative spirit and dynamism of the oil sector in Angola” reflects the country’s pride in its deepwater capabilities and its ongoing efforts to remain a competitive and reliable oil producer on the global stage.

Partners and Collaborative Success

The success of these projects is a testament to the collaborative spirit among the various partners involved in Blocks 17 and 17/06. In Block 17, TotalEnergies operates alongside:

• Equinor: The Norwegian state-owned energy company, a significant player in offshore oil and gas.
• ExxonMobil: One of the world’s largest publicly traded international oil and gas companies.
• BP: A British multinational oil and gas company.

These partnerships bring together diverse technical expertise, financial strength, and operational experience, which are essential for managing the complexities and risks associated with deepwater exploration and production.

In Block 17/06, the partnership includes:

• Sonangol P&P: The exploration and production arm of Angola’s national oil company, Sonangol, ensuring national participation and knowledge transfer.
• SSI (Sinopec Sonangol International): A joint venture between China’s Sinopec and Angola’s Sonangol, reflecting growing Asian interest in Angolan resources.
• Azinam: An independent oil and gas exploration company focused on Africa.
• ACREP (Angola Cabinda Resources Exploration & Production): Another local Angolan entity.

The multi-stakeholder nature of these blocks necessitates robust joint operating agreements and a shared vision for maximizing resource recovery and efficiency. The ability of these diverse entities to work together effectively is a critical factor in the long-term success of Angola’s oil sector.

Broader Economic and Social Impact on Angola

Beyond direct oil revenues, these projects have a ripple effect across the Angolan economy:

• Job Creation: The construction, installation, and ongoing operation of subsea facilities and FPSOs create thousands of direct and indirect jobs. This includes highly specialized roles for engineers, technicians, and maritime personnel, as well as opportunities in supporting industries like logistics, catering, and local services.
• Local Content Development: Angolan regulations increasingly emphasize local content, encouraging international operators to utilize Angolan goods, services, and personnel. This fosters the growth of local businesses and builds domestic technical capabilities.
• Infrastructure Development: Oil and gas investments often spur broader infrastructure development, including improvements in ports, roads, and power supply, which benefit other sectors of the economy.
• Technology Transfer: Collaboration with international supermajors facilitates the transfer of advanced technologies and best practices to Angolan professionals and companies, enhancing the country’s overall industrial capacity.

These contributions are vital for Angola as it strives to diversify its economy away from an over-reliance on oil, but simultaneously needs to maximize revenue from its primary resource to fund that diversification.

Environmental Stewardship and Future Outlook

While “low-emissions” is a stated goal, the oil and gas industry faces increasing pressure regarding its environmental footprint. TotalEnergies, like other major energy companies, is navigating the complex landscape of energy transition. The company has set ambitions to achieve net zero emissions by 2050, across its operations and energy products. Projects like Begonia and Clov Phase 3, by being more efficient and less carbon-intensive than older methods, are presented as part of this transition, providing necessary energy with a reduced impact while the company invests in renewables and other low-carbon solutions.

For Angola, the future of its oil sector will involve balancing the need for continued production to drive economic growth with global pressures for decarbonization. The country has significant untapped potential in deepwater and ultra-deepwater areas, and the success of projects like Begonia and Clov Phase 3 will likely encourage further exploration and development. ANPG continues to offer new blocks in licensing rounds, seeking to attract fresh investment and maintain the dynamism of its oil industry.

The long-term partnership between TotalEnergies and Angola, exemplified by these latest start-ups, underscores a shared commitment to maximizing the value of the country’s hydrocarbon resources. As the global energy landscape evolves, efficient, technologically advanced, and environmentally conscious production from established basins like Angola will remain crucial for meeting global energy demand. The “golden block” continues to shine, contributing significantly to both TotalEnergies’ strategic objectives and Angola’s national prosperity.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

24th July, 2025