MercoPress, en Español

Montevideo, March 25th 2019 - 20:29 UTC

Developing oil field Libra off Brazil will cost 80bn dollars said France's Total

Thursday, September 18th 2014 - 06:25 UTC
Full article 11 comments
Libra, the first of Brazil's pre-salt fields to have been auctioned off, holds reserves estimated at between 8-12 billion barrels of recoverable crude Libra, the first of Brazil's pre-salt fields to have been auctioned off, holds reserves estimated at between 8-12 billion barrels of recoverable crude
Despite the high costs of the project, Paszkiewicz said he expects Libra will deliver a return on the companies' investment “for many decades” Despite the high costs of the project, Paszkiewicz said he expects Libra will deliver a return on the companies' investment “for many decades”

Brazil's biggest oil field, Libra, will cost 80 billion dollars to develop, according to a senior executive with France's Total, one of five consortium members participating in the project. Total's vice president of exploration and production for the Americas, Ladislas Paszkiewicz, made the estimate at the Rio Oil & Gas conference, which began Monday and runs through Thursday.

Libra, the first of Brazil's pre-salt fields to have been auctioned off, holds reserves estimated at between 8-12 billion barrels of recoverable crude, according to official calculations.

Exploration rights to the field were awarded last year to a consortium made up of Brazilian state-controlled Petrobras, which has a 40% stake; Royal Dutch Shell, 20%; Total, 20%; and China's CNPC and CNOOC, each of which has a 10% stake.

The consortium, the sole bidder in last October's auction, paid a 15-billion-reais (roughly 6.9bn dollars) signing bonus to the Brazilian treasury after obtaining the rights to the field for 35 years.

Under the contract terms, the companies will pay royalties and also deliver 41.65% of profit oil, (oil produced after subtracting out production costs) to the Brazilian government.

Despite the high costs of the project, Paszkiewicz said he expects Libra will deliver a return on the companies' investment “for many decades.”

The pre-salt region is so-named because its reserves are located under water, rocks and a shifting layer of salt at depths of up to 7,000 meters below the surface of the Atlantic.

That offshore region, the main focus of investment by Petrobras, could vastly increase Brazil's proved reserves and turn the country into a major crude exporter. The pre-salt area is governed by a special regulatory regime that allows only for production-sharing contracts, not outright concessions.

 

Top Comments

Disclaimer & comment rules
  • Brasileiro

    In just eight years we were able to prospect 500 000 barrels / day. A record in the world!

    https://www.youtube.com/watch?v=ZvHxVwfo6TE&list=LLmXPTu1f8AdGlizWNiASx2A&index=19

    Sep 18th, 2014 - 11:00 am 0
  • golfcronie

    At what cost?

    Sep 18th, 2014 - 02:47 pm 0
  • Monkeymagic

    Great news for Brazil...hope their people can share the wealth and exit the Latam poverty merrygoround.

    Sep 18th, 2014 - 05:52 pm 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!