10/21/2013 - News

Total Awarded 20% Interest in the Super-Giant Libra Field in the Santos Basin

Total, as part of a consortium whose other members are Petrobras, Shell, CNPC and CNOOC, has been awarded a 35-year production sharing contract to develop the super-giant Libra field with a potential of 8 to 12 billion barrels of recoverable oil resources, and a total gross peak oil production that could reach 1.4 million barrels per day as per the Brazilian regulator, Agência Nacional do Petróleo (ANP).

The Libra field is the largest pre-salt oil discovery to date in the prolific Santos Basin, offshore Brazil. The field is located approximately 170 kilometers off the coast of Rio de Janeiro. It covers an area of 1,550 square kilometers in water depths of around 2,000 meters.

“Libra offers a unique opportunity to participate in the development of a super-giant deep offshore oil discovery with strategic partners. Reinforcing our position in the pre-salt Santos Basin strengthens and diversifies our upstream portfolio and fits with our strategy to sustain post-2017 production over the next decade. We look forward to participating in the development of these vast resources, and we are confident that the combined deep offshore expertise represented within the consortium will be a valuable contribution to the growth of Brazil’s oil and gas production,” said Christophe de Margerie, Chairman and Chief Executive Officer of Total.

Total holds 20% in the consortium, with Petrobras 40% as operator, Shell 20%, CNPC 10% and CNOOC 10%. The project will be developed through a joint project team bringing together Petrobras' world-class knowledge and experience of pre-salt carbonates and Total and Shell's expertise and skills in deepwater and large project management.

As part of the winning bid, Total will pay BRL 3 billion (US$ 1.4 billion) as its 20% share of the signing bonus. In addition to the signing bonus, the consortium will have to conduct a minimum work program consisting of 3D seismic, two wells and an extended well test to be completed no later than end-2017.