Total sees cash flow, output boost from deepwater projects
PARIS, Sept 25 (Reuters) - Oil and gas major Total
, said on Tuesday it expected deepwater oil and gas
operations to make a strong contribution to its output and cash
flow thanks to major developments in the West Africa's Gulf of
Guinea region, Brazil and U.S. Gulf area.
Production from deepwater projects is expected to reach
500,000 barrels of oil equivalent per day (Kboe/d) by 2020,
contributing to its 6 to 7 percent output growth target per year
from 2017 to 2020.
"Deepwater is today for us a growing and very profitable
part of the portfolio," Total's President for Exploration and
Production Arnaud Breuillac, told investors in New York.
Deepwater production will increase to more than half a
million barrels of oil per day by 2020 with cash flow from
operations at over $30 per barrel at an oil price of $60 per
barrel, Breuillac said.
"Deepwater is approximately 15 percent of the group's
production but it will contribute to more than 35 percent of
cash flow from operations in the coming years," he said during a
Total's deepwater projects on the West African coast
includes Moho Nord in Congo, Kaombo North in Angola which began
production in July. Production is expected to start at its
Nigeria's Egina field by the end of the year, and at Kaombo
South by the summer of 2019.
Breuillac said the French company had a number of
significant projects in pipeline in Brazil's "pre-salt" or deep
offshore projects, including Lapa, Libra and Lara projects which
could add around 100 kboe/d by 2022.
In the Gulf of Mexico, the Ballymore giant discovery is
being appraised, while production and more developments were
ongoing at its Jack and Tahiti operations.
Total is also exploring in several new deep water areas in
Guyana, Mauritania and Senegal, and in South African and
"We have a strong deepwater exploration portfolio with
numerous drill targets in large areas, targeting significant
areas to be drilled in the next two to three years," Breuillac
(Reporting by Bate Felix. Editing by Jane Merriman)
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