Oil giants TotalEnergies and Petrobras have decided to extend two oil fields in Brazil, TotalEnergies announced on Monday in a press release, noting its “strong growth” in this Latin American country.
“TotalEnergies, along with operator Petrobras and their partners,” have “made the Final Investment Decision for the second phases of development” for two fields, Atapu and Sépia, located offshore São Paulo and Rio de Janeiro.
TotalEnergies and Petrobras have been operating these fields since 2020 and 2021 respectively, with production capacities of 150,000 and 180,000 barrels per day.
The production capacity will reach 225,000 barrels per day per field for the second phase of development, with effective start-up planned “from 2029.”
“The decision to launch Sépia-2 and Atapu-2 marks a new stage in our strong growth in Brazil,” said Nicolas Terraz, head of exploration and production at the group, quoted in the release.
“Brazil will soon represent more than 200,000 barrels of oil equivalent per day of net production,” and “at their peak, Sépia-2 and Atapu-2 will contribute to maintaining TotalEnergies’ production in this key country above 200,000” barrels per day, he added.
TotalEnergies holds 15% and 16.9% stakes in the Atapu and Sépia fields, both operated by Petrobras (which holds 65.7% and 55.3%).
Shell holds 16.7% of Atapu, while Petronas and QatarEnergy each hold 12.7% of Sépia.
On Friday, the CEO of TotalEnergies reiterated to shareholders that it is “necessary” to bring “new fields” into production.
In May 2021, the International Energy Agency warned that “no new oil and gas field developments are needed beyond those already approved.”
Last week, TotalEnergies announced the launch of a new oil project off the coast of Angola, with production expected to begin in 2028 and aim for a “plateau of 70,000 barrels of oil per day.”