The government excluded Odebrecht Oil and Gas Angola from the block 16 production sharing contract for non-compliance with contractual and financial obligations and transferred the company’s stake to the French multinational Total.
In an executive decree published today in the Diário da República, signed by the Minister of Mineral Resources, Oil and Gas, Diamantino Azevedo, Odebrecht, which holds a 15% interest in the Block 16 production sharing contract, no longer fulfills the requirements demanded by law.
Odebrecht is “in a situation of non-compliance with financial obligations related to the payment of its share of costs incurred by the contractor group” in the operations in this block, hindering “the normal execution of oil operations”, the government adds.
Non-compliance provides the national concessionaire with “just cause” to terminate the production sharing contract in relation to Odebrechet “with the consequent free reversion of the corresponding participatory interest for itself”.
Bearing in mind that the national concessionaire and Sonangol have waived the preemptive right over Odebrecht’s 15% interest, this participatory interest will be transferred to Total E&P Angola Block16 A / S. After the exclusion, the contractor group has the following constitution: Total E&P Angola Block16 A / S, 65%, Total E&P Chissonga, Ltd, 15% and Sonangol Pesquisa e Produção, 20%. Total is the main oil operator in Angola, where other multinationals such as BP, Chevron and Eni are present.