International oil and gas major
) has decided to shed its 15% interest in offshore Angola Block
15/06 to Sonangol E&P. TOTAL intends to concentrate more on
assets (in Angola) in which it has a majority working interest.
TOTAL will receive $750 million for the transfer of its interest
in this block.
TOTAL's presence in Angola goes back to 1953 and the company has
gradually expanded its footprint in this African nation.
Presently, the company is among the largest oil operators in
Angola. The majority of TOTAL's oil and gas production in Angola
comes from Blocks 17, 0 and 14. Another large operator in the
). Chevron has a 36.4% interest in Angola LNG Limited, which will
operate the country's first LNG plant.
TOTAL's primary asset in Angola is in Block 17 with a 40%
interest. In Block 32, TOTAL holds a 30% stake. Block 32 is going
to be the next big thing for TOTAL in Angola, with 12 confirmed
discoveries for oil production. Further studies are ongoing for a
development in the central southeastern sector of this block.
The long-term strategy of the company is to have a well spread
global production portfolio. TOTAL also aims to hold major
interests in joint assets. This initiative gives the company the
right to control the project and have the best share of the
Such a quest has led TOTAL to add and shed assets. In the first
nine month of 2013, the company acquired assets worth $2.6
billion, while its divestments brought in $4.4 billion. We expect
the company to utilize the funds to further expand globally.
TOTAL has operations in more than 130 countries across five
continents. Management at TOTAL is active on acquiring lucrative
assets and selling off non-core properties to boost production
and profitability. These strategic decisions pave the way for the
best possible returns for its shareholders.
TOTAL currently has a Zacks Rank #2 (Buy). Investors interested
in the oil and gas industry may also consider stocks like
TransAtlantic Petroleum Ltd.
). While YPF S.A. holds a Zacks Rank #1 (Strong Buy),
TransAtlantic Petroleum carries a Zacks Rank #2 (Buy).
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