WHY TOTAL CALLS IT QUITS AS DIG OIL IS GIVEN BREATHER

摘要

To everyone’s surprise, the French major has decided to relinquish its only Congolese block. While still pushing to pick up blocks 1 and 2 in the east of Congo-K, Total has taken a step back by relinquishing its shares in block 3. A surprise about-turn. For the past two years, the French major’s policy in the country has been to ask for - and easily obtain - additional extensions to the first exploration period with which to drill a well on block 3, which it has operated since 2010 (AEI 812). However, the Congolese ministry of hydrocarbons’ largesse over the matter has not been enough to convince Total to stay in the country. According to our sources, although Total was expected to discuss the matter with Kinshasa earlier this year before the expiry of its second extension, Total, still unable to drill a well, has opted to relinquish its interest. It is understood Total did not organise a meeting to explain its decision, opting to merely inform the ministry by letter at the end of February. The move did not go down well with the acting minister in charge of the gas sector at the time, John Kwet Mwan Kwet, who is also in charge of cooperation. Total’s partners on block 3, Dig Oil and Efora Energy, are already on the hunt for a new well-heeled operator after securing another six-month extension that will take them through to August.