Total sees its oil production in Brazil growing fourfold in five years
Encouraged by the portfolio it amassed in Brazil over the last few years, French oil company Total intends to invest $600 million to $700 million a year in exploration and production in the country through 2024. During this period, it expects to increase Brazilian oil production fourfold, from the 40,000 barrels a day estimated for this year to more than 150,000."We already have a high number of high-quality assets," Total's E&P president, Arnaud Breuillac, who was in Brazil last week, told Valor. "We are satisfied with what we have now, but our ambition is to have more. I believe the main driver is the quality of assets."
Total produces about 3 million barrels a day of oil equivalent, with $176 billion in annual sales. In Brazil, where it has been for 45 years, it has already invested $7 billion and employs about 3,000.
Its portfolio in the country include the significant Mero (former Libra) and Iara fields in the pre-salt layer of the Santos Basin and the promising C-M-541 block in the Campos Basin, which it acquired last year in the 16th bidding round of the National Petroleum Agency (ANP) last October, whose contract was signed last month. Mr. Breuillac is also proud of the Lapa field in the pre-salt of Santos.
"It [Lapa] is very symbolic because it is the first field operated by an IOC [international oil company] in the pre-salt," he said. "Being operator is important because we really believe we can generate value, we can contribute even more in our partnership with Petrobras."
Total owns 35% of Lapa, with Petrobras holding 10%, Shell having 30% and Repsol with 25%.
Mr. Breuillac said planned investments in E&P in Brazil may increase in case the company succeeds in new exploratory activities. Among exploration projects, one of Total's biggest bets is the C-M-541 block, where it intends to drill two wells, one late this year and another early in 2021. The company is the operator of C-M-541, with a 40% stake, having as partners Qatar Petroleum (40%) and Malaysia's Petronas (20%). "We are very hopeful," Mr. Breuillac said about the block.
Regarding the blocks on the Mouth of the Amazon River, in the Equatorial Margin, where Total had the environmental license for drilling denied by environmental agency Ibama, Mr. Breuillac said the company is analyzing the project with partners to make a...
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