September 27, 2018
Total expects to more than triple its production of oil and gas in Brazil in the next four years. The company’s new president, Arnaud Breuillac, announced that the company’s goal is to reach a production of 100,000 barrels per day of oil equivalent (BOE / day) in the country in 2022.
Currently, Total produces about 30 thousand BOE / day in Brazil. The company operates the Lapa field and is a minority partner of Petrobras in Iara and Libra, all of them in the Santos Basin pre-salt.
Breuillac pointed out that the company has built a portfolio of “high quality” assets in Brazil in recent years.
“We have very competitive deepwater assets, a growing production with low costs,” said the executive.
After completing the acquisition of a 35% (and operation) slice of the Lapa field from Petrobras earlier this year, Total became the first foreign oil company to operate a pre-salt field. The intention of the company is to start a new phase of production in the field as of 2019.
The French company is also a partner of Petrobras, with a 20% stake in the Mero project (northwestern part of Libra), which began production in the test phase in November. Total estimates that Libra has potential for between 3 billion and 4 billion barrels of oil equivalent (BOE).
Still in the pre-salt, the oil company also owns 20% of the Gato do Mato project, operated by Shell, and in January, concluded the purchase of a 22.5% stake in Petrobras in the Iara concession, expected to produce this year.
The acquisition of Lapa and Iara, for US $ 1.95 billion, was Total’s main move in Brazil since 2013, when the company participated in the Libra auction and the 11th Round of exploratory block concessions. The multinational even participated in the auctions of 2017 and 2018, but did not acquire many assets.
The only asset acquired by the French company in the last five bids since last year was the purchase of 20% of the area of Gato do Mato, adjacent to the discovery BM-S-54 pre-salt in the Santos Basin, for which the oil company disbursed R $ 20 million. Shell has the remaining 80%.
In all, the company has a portfolio of 17 exploratory blocks, in the basins of Santos, Foz do Amazonas, Ceará, Barreirinhas, Espírito Santo and Pelotas.
Total will have an opportunity to acquire new assets in the 5th Round of the pre-salt. The company is one of 12 registered for the auction, which will offer four areas in the Campos and Santos basins: Pau-Brasil, Southwest of Tartaruga Verde, Tita and Saturno.