Total, Premier reveal offshore Brazil license plans

Total has won shares in 10 new exploration licenses under Brazil’s 11th bid round.

Offshore staff

PARIS – Total has won shares in 10 new exploration licenses under Brazil’s 11th bid round.

The company will have a 40% operating interest in five blocks in theFoz do Amazonas basin: FZA-M-57, FZA-M-86, FZA-M-88, FZA-M-125, and FZA-M-127; a 45% interest in block CE-M-661 in the Ceara basin; 25% of blocks ES-M-669, ES-M-671, and ES-M-743 in the Espirito Santo basin; and 50% of block BAR-M-346 in the Barreirinhas basin.

Total operates theXerelete field in the Campos basin about 250 km (155 mi) off the coast of Rio de Janeiro, where it plans further drilling activities. Additionally, it holds 20% of block BM-S-54 where the Gato do Mato discovery is undergoing appraisal.

UK independent Premier Oil gained stakes in three blocks in the11th round, all in deepwater basins off northeast Brazil in largely unexplored areas. They contain prospects and leads capable that could each hold reserves in the 250 MMbbl to 1 Bbbl range.

The company has 50% operated equity in blocks 717 and 665 in the Ceara basin.

In block 717 it plans to pursue a potential extension of the Pecem discovery to the north and a slope channel play that will require further 3D seismic to confirm drilling prospects. In block 665 a large Cretaceous on-lap play has been identified, and will be assessed by a 3D seismic survey in 2014.

Premier also picked up a 35% participating interest in block 90 in the Foz do Amazonas basin. There is a proven Cretaceous exploration play proven across the border in French Guiana waters. Main target will be stratigraphic traps on-lapping a rift basin high, with 3D seismic acquisition planned next year.

The company will pay $24.5 million in signature bonuses and expects to commit around $25 million to the 3D surveys. Its drilling commitments include one exploration well on block 90 and two on block 717.

5/16/2013

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