TOTAL Withdraws from Foz do Amazonas Exploration Blocks Offshore Brazil
TOTAL E&P do Brasil Ltda, a wholly-owned subsidiary of French energy major TOTAL SA, has entered into an agreement with Brazil’s state-owned Petroleo Brasileiro SA (Petrobras) to withdraw from and transfer its 40% operated interest in five exploration blocks located in the Foz do Amazonas basin, offshore Brazil. Petrobras and a wholly-owned subsidiary of BP Plc currently hold a 30% interest each in the blocks.
In August, TOTAL had notified Brazilian oil regulator Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) of its decision to resign from its role as the operator of the blocks, which opened a period of six months during which a new operator would have been appointed, and to whom the operated activities would have been handed over.
Exploration blocks FZA-M-57, FZA-M-86, FZA-M-88, FZA-M-125, and FZA-M-127 are situated approximately 120 km off the coast of Amapá State. The blocks were awarded in May 2013 as part of ANP’s 11th Bidding Round. The initial exploration plans included drilling of up to nine wells in the blocks, which are estimated to contain more than 14 billion barrels (Bbbls) of oil.
The completion of TOTAL’s withdrawal and the transfer of its interest to Petrobras is subject to customary closing conditions, including BP’s pre-emptive rights and the receipt of ANP approval.