Brazil’s Giant Libra Field Comes On Stream

Total has announced first oil from the Libra mega-field, located in ultra-deep waters 180 kilometers offshore Rio de Janeiro, in the pre-salt Santos Basin in Brazil. The floating production, storage and offloading (FPSO) unit Pioneiro de Libra has a capacity of 50,000 barrels of oil. This start-up of the early production system will generate revenue while also enabling technical data to be collected to optimize the subsequent development phases.

“Total is pleased that production has begun on the giant Libra field, which is a multi-billion barrel resource,” said Arnaud Breuillac, President, Exploration & Production at Total. “Libra is a major asset in Total’s portfolio and fits into our strategy of investing in highly competitive projects with low break-even points. The start-up is a major step in the development of this field, and Total is bringing its deep offshore expertise to the project.”

Beyond this early production phase, the Libra development will further continue with the next investment decision for the Libra 1 FPSO with a capacity of 150,000 barrels per day. In the years ahead, other production units of similar capacity will be invested in so that the field can be developed to its full potential.

The Libra field is operated by Petrobras (40%) as part of the international consortium whose other partners are Total (20%), Shell (20%), CNOOC (10%) and CNPC (10%).

TOTAL at a glance

With operations in more than 130 countries, Total engages in all aspects of the petroleum industry, including Upstream operations (oil and gas exploration, development and production, LNG) and Downstream operations (refining, marketing and the trading and shipping of crude oil and petroleum products). The company employ almost 100,000 people worldwide.

Total's Upstream business encompasses oil and natural gas exploration, development and production, along with coal, gas and power activities. Exploration and Production has activities in more than 40 countries with production in 30 of these countries. The company's main production regions are the North Sea, Africa and the Middle East, followed by Southeast Asia and North and South America.

Total raised output by 4.7% to 2,452 thousand barrels of oil equivalent a day in 2016.

Proved reserves based on SEC rules (based on Brent at 54.17 $/b) were 11,518 Mboe at December 31, 2016. Total had a solid and diversified portfolio of proved and probable reserves representing more than 20 years of reserve life based on the 2016 average production rate.

BRAZIL OPERATIONS

Total has been present in Brazil for over 40 years, has more than 2,800 employees there and operates through five affiliates in the exploration and production, gas, lubricants, chemicals and renewable energies (solar and biomass) segments.

In February 2017, Total and Petrobras signed agreements covering a number of upstream and downstream assets in Brazil, cementing the Strategic Alliance announced in December 2016. Under that deal, Total will hold a 22.5% stake in the Iara concession area in Block BM-S-11 and a 35% stake in and operatorship of Block BM-S-9 in the Lapa field concession, which came on stream in December 2016. Additionally, technical cooperation between the two companies will be strengthened, particularly through joint appraisal of the exploration potential in promising areas in Brazil and through the development of new technologies, particularly in the deep offshore. The transaction is subject to approvals by the relevant regulatory entities.

Overview
Petrobras will transfer 22.5% of rights to Total in the concession area named Iara (comprising the Sururu, Berbigão and Oeste de Atapu fields which are under unitization with the Entorno de Iara, a transfer of rights area in which Petrobras holds 100% interest) in the Block BM-S-11. Petrobras will continue to be operator with a majority interest of 42.5%. The partnership with Total will allow Petrobras to reduce its investment and benefit from technological solutions that will be jointly studied between Petrobras and total, maximizing profitability and the volume of oil to be recovered. BG E&P Brasil, a Royal Dutch Shell subsidiary, with 25% and Petrogal Brasil, with 10%, also take part in the consortium.

Petrobras will transfer 35% of rights to Total, in the Lapa field concession area, in Block BM-S-9 and will also transfer the operatorship to Total whereas Petrobras will remain in the license with 10%. The Lapa field has been put in production in december 2016. Total, as new operator of this field, will bring to the Consortium its valuable experience in deep-offshore projects to manage the next phases of the challenging development of the Lapa field as it presents distinct characteristics from other pre-salt fields.The other partners are BG E&P Brasil, a Royal Dutch Shell subsidiary, with 30% and  Repsol-Sinopec Brasil , with 25%.

Petrobras will transfer 50% interest to Total in Termobahia composed of 2 cogeneration plants, Rômulo de Almeida and Celso Furtado, located in Bahia area. The two plants are connected to the regasification terminal located in São Francisco do Conde, also in Bahia where Total will take regasification capacity to supply gas to the power plants. This integrated G&P joint venture will represent an innovative partnership in the Brazilian G&P market.

The above contracts are in addition to the ones already executed on the 21st of December 2016, such as: (i) option for Petrobras to purchase 20% interest in block 2 of the Perdido Foldbelt area, in the Mexican sector of the Gulf of Mexico, (ii) joint exploration studies in the exploratory areas of Equatorial Margin and in Santos Basin; and (iii) Technological partnership agreement in the areas of digital petrophysics, geological processing and subsea production systems.

Total and Petrobras
Currently, Petrobras and Total jointly participate in 19 consortiums worldwide in Exploration and Production. In Brazil, the companies are partners in the development of the giant Libra field which is the first Production Sharing Contract in the Brazilian pre-salt Santos basin. Outside Brazil, Petrobras and Total are partners on the Chinook field in the US Gulf of Mexico, on the deep-water Akpo field in Nigeria and on the gas fields of San Alberto and San Antonio/Itau in Bolivia, as well as in the Bolivia-Brazil gas pipeline.

In May 2013, Total was awarded 10 new exploration licences in the Brazilian National Petroleum Agency’s (ANP’s) 11th bid round., with a 40 per cent stake in five blocks it would be operator in the concessions in the Foz do Amazonas basin.

The blocks are: FZA-M-57, FZA-M-86, FZA-M-88, FZA-M-125 and FZA-M-127 and with 45 per cent interest in one block, CE-M-661 in the Ceara basin.

In addition, Total has acquired a 25 per cent working interest in three blocks ES-M-669, ES-M-671 and ES-M-743 in the Espirito Santo basin as well as a 50 per cent interest in one block (BAR-M-346) in Barreirinhas basin.

In March 2017, Petrobras and Total signed definitive contracts in relation to the package of assets contemplated in the Strategic Alliance between the two companies.

Through these contracts:

Petrobras will transfer 22.5% of rights to Total in the concession area named Iara (comprising the Sururu, Berbigão and Oeste de Atapu fields which are under unitization with the Entorno de Iara, a transfer of rights area in which Petrobras holds 100% interest) in the Block BM-S-11. Petrobras will continue to be operator with a majority interest of 42.5%. The partnership with Total will allow Petrobras to reduce its investment and benefit from technological solutions that will be jointly studied between Petrobras and total, maximizing profitability and the volume of oil to be recovered. BG E&P Brasil, a Royal Dutch Shell subsidiary, with 25% and Petrogal Brasil, with 10%, also take part in the consortium.

Petrobras will transfer 35% of rights to Total, in the Lapa field concession area, in Block BM-S-9 and will also transfer the operatorship to Total whereas Petrobras will remain in the license with 10%. The Lapa field has been put in production in december 2016. Total, as new operator of this field, will bring to the Consortium its valuable experience in deep-offshore projects to manage the next phases of the challenging development of the Lapa field as it presents distinct characteristics from other pre-salt fields.The other partners are BG E&P Brasil, a Royal Dutch Shell subsidiary, with 30% and  Repsol-Sinopec Brasil, with 25%.

Petrobras will transfer 50% interest to Total in Termobahia composed of 2 cogeneration plants, Rômulo de Almeida and Celso Furtado, located in Bahia area. The two plants are connected to the regasification terminal located in São Francisco do Conde, also in Bahia where Total will take regasification capacity to supply gas to the power plants. This integrated G&P joint venture will represent an innovative partnership in the Brazilian G&P market.

Libra Field
In November 2017, Total announced first oil from the Libra mega-field, located in ultra-deep waters 180 kilometers offshore Rio de Janeiro, in the pre-salt Santos Basin in Brazil. The floating production, storage and offloading (FPSO) unit Pioneiro de Libra has a capacity of 50,000 barrels of oil. This start-up of the early production system will generate revenue while also enabling technical data to be collected to optimize the subsequent development phases.

Beyond this early production phase, the Libra development will further continue with the next investment decision for the Libra 1 FPSO with a capacity of 150,000 barrels per day. In the years ahead, other production units of similar capacity will be invested in so that the field can be developed to its full potential.

The Libra field is operated by Petrobras (40%) as part of the international consortium whose other partners are Total (20%), Shell (20%), CNOOC (10%) and CNPC (10%).

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