Oil: Total acquires Chevron’s 45.9 per cent interest in JDZ

Monday July, 19, 2010

Chevron’s 45.9 percent interest in block ‘one’, which is part of the Joint Development Zone (JDZ) of the Nigeria – Sao Tome and Principe Joint Development Authority, has been acquired by TOTAL.

The Nigeria – São Tomé and Príncipe Joint Development Authority is an organisation established by treaty that regulates the two countries’ Joint Development Zone in the Bight of Benin. The Zone is along the maritime Nigeria – São Tomé and Príncipe border.

The JDZ is governed by a treaty signed by Nigeria and Sao Tomé and Principe in 2001 for a period of 45 years. This transaction is subject to approval by relevant authorities.

Total will operate the block in partnership with Addax Petroleum JDZ One Limited, Dangote Energy Equity Resources and Sasol Exploration and Production Nigeria Limited.

According to a statement signed by Mr. Fred Ohwahwa, the Manager, External Communication, Total E&P Nigeria Limited, at the weekend, stated that the licence extends to 700 square kilometres in water depths, ranging from 1,600 to 1,800 meters.

“Within this licence, a discovery was made in 2006 (Obo-1 well). The proximity of the Total-operated licenses and facilities in Nigeria will enable cost reductions in developing the licence’s resources.”

This acquisition is in line with Total’s strategy of expanding its exploration and production operations in the Gulf of Guinea.
Africa is one of Total’s main production growth focuses. Most of its exploration and production operations are located in Gulf of Guinea countries — especially Nigeria and Angola — and in North Africa.

In 2009, Total’s equity production in Africa averaged close to 750,000 barrels of oil equivalent per day (including that of unconsolidated subsidiaries), accounting for 33 per cent of the group’s total production.

Deepwater developments are one of Total’s main growth areas in Africa. Development of the Group’s second deep offshore project in Nigeria, in the Usan field on the OML 138 permit, began in early 2008, with production scheduled to start up in 2012. Also in Nigeria, front-end engineering and design (FEED) for the Egina field in OML 130, near Akpo, is underway.