Big fields provide foundation blocks for corporate growth.

Angola is the kind of place exploration and production companies dream about. For companies that get in on the play early with the financial clout to move to the production stage, it offers strong cash flows that will help support a company for more than a quarter of a century. Total was one of the companies that entered the Angolan offshore play with a strategy that continues to work.

"Development of the hydrocarbon resources on the continental shelf in the Gulf of Guinea zone is one of the major thrusts of Total Exploration & Production development policy. Girassol offshore Angola is a notable step in this direction," a Total spokesman said.

Jasmim will be tied to Girassol production in November this year.

The strategy is classic, Total already had onshore production and production from Block 3 in shallower water offshore Angola with a production base of some 200,000 b/d. It used its experience in Block 3 to predict production trends to the southeast into deepwater Block 17. Even though the first well in Block 17 was dry, it confirmed projections of Total's geoscience team.

Block 17 has become the deepwater cornerstone of the company's Angolan activity, but it is the operator on blocks 3, 19 and 32, as well. It also has partnership interests in blocks A, B, C, 1, 2, 14, 31 and 33.
The 725-million bbl Girassol discovery on the block, along with additional discoveries, led the company to fast-track construction of the world's largest floating production, storage and offloading (FPSO) vessel and the first and largest Calm buoy to offload the oil to tankers a mile away from the FPSO.

It raised production to 200,000 b/d of oil within 2 months of startup in late 2001, and it maintains that production level. Stage 2 production activities could raise that production as high as 230,000 b/d. Some of the wells feeding the Girassol FPSO in 4,593 ft (1,400 m) of water tested as high as 40,000 b/d of oil.
Overall, Total will spend US $3 billion on the project, and $1 billion of that went into the FPSO. Total also tied the 243-million-bbl Jasmim discovery, with a potential production rate of 60,000 b/d, to Girassol in November.

With that kind of strong production stream helping provide funds, Total is already putting out contracts for its standalone Dalia development in Block 17. That development is larger than Girassol with some 840 million bbl of reserves and a potential production of 225,000 b/d. The FPSO will have the capacity to handle 240,000 b/d.

West Africa is important for service companies, too. A consortium of Technip-Coflexip, Saipem, Stolt Offshore, Samsung and Daewoo has been contracted to work on the $640-million FPSO. Technip-Coflexip also has the $580-million subsea umbilicals, risers and flowlines contract. Aker Kværner landed a $300-million contract for 67 Christmas trees and wellhead systems and nine manifolds.

The $3.4-billion Dalia development also will get oil from the Rosa, Lirio, Cravo discoveries with 190,000 b/d of production capability. It also will tie in Perpetua, Violeta, Orquidea, Zinia and Hortensia discoveries later with an additional 150,000 b/d of production potential. Camelia is scheduled to tie into Dalia in 2010.
Just as understanding the geology of Block 3 led to the discoveries on Block 17, Total is using information gained on Block 17 for its exploration campaign in Block 32 in even deeper water immediately to the west.

Its Gindungo-1 well in 4,739 ft (1,445 m) of water tested 7,400 b/d and 5,700 b/d, respectively, from two zones at a location in the eastern part of the block about 40 miles (64 km) from the Girassol platform. It's important to prove the production capability of this high-potential block, because Total and partners Marathon, ExxonMobil, Petrogal and Sonangol paid a $300-million signature bonus for the exploration and production rights.

Total isn't the only company with great results from Angola's offshore, but overall, it may have gotten the best of the activity.

ExxonMobil vies for production potential with its Block 15. In that block, the oil company already has put its 337-million-bbl Xikomba discovery on line at 80,000 b/d.

It's next project in the works is Kizomba A in the same block with 954 million bbl of reserves and potential production of 250,000 b/d after it comes on line in 2005. That development includes the Hungo and Chocalho fields and ExxonMobil is building the world's largest FPSO to handle production duties.
ExxonMobil's third big project is Kizomba B in the same block with another 951 million bbl of reserves and another 250 million b/d of oil production. That is scheduled to come on line in 2006.

In all, ExxonMobil has made 14 discoveries on the block for reserves of 4 billion bbl of oil. Throughout Angola, the giant company has amassed 10.5 billion bbl of reserves.

ChevronTexaco has had similar results from its Block 14, in which Total also holds a share. The $1.5 billion Benguela/Belize complex producing to Africa's first compliant tower is due on line in 2005 with 1 billion bbl of reserves and anticipated production of 200,000 b/d, and the company has discovered Galeta, Landana, Lobito and Tomboco on the same block. It already is producing from Kuito, the first field offshore Angola to produce from deep water.

BP hasn't been left out of the game. Its Greater Plutonio complex in Block 18 holds another billion barrels of oil and should produce some 220,000 b/d of oil after coming on line in 2005. Fields contributing to the FPSO in 4,400 ft (1,342 m) of water include Plutonio, Platina, Galio, Cromio, Paladio and Cobalto.
BP also is moving into deeper water with its third discovery at the Saturno-1 well in Block 31, also with Total as a partner, immediately north of Total's Block 32. The Saturno well, some 8.6 miles (14 km) northeast of the first discovery on the block, Plutao, flowed 5,000 b/d of oil from 5,900 ft (1,799 m) of water.
The major operators that got into the action early in Angola's deepwater anticipate more discoveries as the play moves into deeper water.