Industry News

Executive Says: Permit Delays Slow Total's Brazil Drilling Plans

Environmental permit delays are likely to set back the Brazilian offshore drilling activities of French oil company Total SA by about a year, a senior executive said on Monday.

Rigzone
16/12/2014 19:39
Visualizações: 295 (0) (0) (0) (0)

Environmental permit delays are likely to set back the Brazilian offshore drilling activities of French oil company Total SA by about a year, a senior executive said on Monday.

 

Total, which has stakes in 13 Brazilian offshore blocks and runs drilling activities in seven of them, is grappling with the a slow environmental approval process that has become a recurring complaint for many in the industry, said Denis Palluat, Total's managing director in Brazil.

 

"Environmental licensing takes a long time. Drilling will only take place in 2016 or 2017," Palluat said. "Licensing makes things a little harder ... exploration and production is a long-term job, that takes a long time in general."

 

Oil prices have fallen to their lowest levels in six years, prompting oil firms to seek cut costs and improved efficiency. Lower prices could force oil companies to reconsider some investments, Pallaut said.

 

Even so, he said, Brazil continues to be a "priority" for Total.

 

Total owns 20 percent of the Libra field in the Santos Basin south of Rio de Janeiro. The area was the first in Brazil to be auctioned under new production-sharing rules. Libra contains an estimated 8 billion to 12 billion barrels of recoverable oil in Brazil's so-called sub-salt district.

 

The sub-salt refers to oil in fields off Brazil's coast in the Santos and Campos Basins trapped far beneath the seabed by a layer of mineral salts. Libra, if its potential is confirmed, would be one of the biggest oil fields discovered anywhere in the last 50 years.

 

Environment watchdog Ibama's press office told Reuters that the licensing process is taking place "within legal deadlines."

 

Libra is 40 percent-controlled by Brazilian state-run oil producer Petróleo Brasileiro SA, known as Petrobras, which is also the operator of the concession. Royal Dutch Shell Plc owns 20 percent, and Chinese oil companies CNOOC Ltd and China National Petroleum Corp each own 10 percent.

 

In relation to a corruption scandal involving Petrobras, Palluat said he "didn't see any difference at all" in the company's activities.

 

Prosecutors are investigating a graft and money-laundering scheme at the company, which allegedly funneled billions of reais in contract over-payments to Brazilian political parties, politicians and company executives.

 

Palluat expects drilling at Libra to allow the consortium to conduct its first long-duration well test in 2017.

 

Most Read Today
see see
International Company News
OES Group Returns to Private Ownership Following Managem...
01/09/26
Products and Services
RiverTough Bearings and Seals
27/08/26
Pre-Salt
Petrobras platforms P-80 and P-82, which will operate in...
27/08/26
Royalties
Values related to June production were distributed to st...
27/08/26
People
bp appoints Felipe Arbelaez head of country for Brazil
27/08/26
ROG.e 2026
ROG.e 2026 brings global leaders together to discuss the...
26/08/26
Pre-Salt
Búzios field sets monthly and daily natural gas export r...
26/08/26
Navalshore
Firjan SENAI presents the Supplier Opportunities Network...
17/08/26
Equatorial Margin
Morpho Well: Petrobras discovers hydrocarbons in ultra-d...
15/08/26
Power Generation
Campo Grande hosts four days of debates on bioenergy and...
12/08/26
International
KPMG: fossil fuel consumption falls, despite oil's signi...
12/08/26
Fenasucro
Fenasucro & Agrocana opening highlights Brazil's leaders...
12/08/26
Event
IBP and BIP bring together leaders to discuss technology...
11/08/26
Event
Asset Management gains prominence in corporate strategy;...
11/08/26
Macaé
Foresea takes part in WSOP 2026 and reinforces that safe...
11/08/26
Sergipe-Alagoas Basin
Siemens Energy advances offshore expansion in Brazil wit...
10/08/26
Campos Basin
Raia Project Reaches New Milestones in One of Brazil’s M...
06/08/26
Permanent Offer
ANP Takes Part in Ceremony Marking the Signing of Contra...
05/08/26
SOG 2026
ABPIP Strengthens Territorial Development Agenda in Serg...
04/08/26
SOG 2026
SOG26 Surpasses the Previous Edition and Reinforces Serg...
03/08/26
People
Shell Brasil Begins a New Leadership Cycle with João San...
03/08/26
VEJA MAIS
Newsletter TN

Contact us

We use cookies to ensure you have the best experience on our website. If you continue to use this site, we will assume that you agree with our Privacy Policy, terms of use and cookies.

2