French energy major TotalEnergies is advancing offshore oil
projects in Brazil that will add 25,000 barrels per day (bpd) by
early 2026, while exploring opportunities in battery storage and
hydroelectric power in Brazil, BNamericas reported.
According to TotalEnergies’ managing director in Brazil, Olivier
Bahabanian, the major currently produces around 200,000 bpd in
Brazil through nine floating production storage and offloading
(FPSO) vessels, adding that operations have proved resilient to
current oil price levels of approximately $65 per barrel.
At the recent industry event OTC in Rio de Janeiro, Bahabanian
told BNamericas that TotalEnergies is completing
installation of its Lapa Sudoeste project in the Santos basin, a
15-kilometre tieback connecting three wells to the Lapa FPSO that
will add approximately 25,000 bpd.
'We should complete installation and begin production by the end
of this year or early next year, depending mainly on weather
conditions,' Bahabanian said.
Brazil represents roughly $1bn of TotalEnergies' $10bn annual
global exploration and production investment. However, the company
opted not to bid in recent licencing rounds, including the recent
auction, because opportunities did not fit its criteria.
'We still feel there's a lot more to find, possibly to tie back
to existing installations,' Bahabanian said, referring to the
Santos and Campos basins where TotalEnergies holds assets.
The most promising exploration block is Água Marinha in the
Campos basin, operated by Petrobras, where drilling of a key well
is nearing completion.
TotalEnergies is pursuing renewable energy investments through
its joint venture with Casa dos Ventos, focusing on wind, solar,
and hybrid projects. Brazil's deregulated electricity market and
grid, which is 90% renewable, make it particularly attractive.
'The goal is to combine renewable generation with flexible
assets such as hydroelectricity or battery storage. We're
interested and are looking at opportunities [in hydro
investments],” he said, although the company does not yet hold such
assets in Brazil.
'Brazil's onshore wind yields are comparable to offshore yields
in other countries, but with much lower costs,' Bahabanian
added.
The company is executing a $7.5bn cost reduction programme
across operating and capital expenditures to maintain profitability
during price downturns.
'We maintain that resilience through strict cost control,'
Bahabanian said, noting TotalEnergies did not cut its dividend
during the 2020 oil price collapse when some peers did.
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