TotalEnergies and Petrobras, with their partners, have taken the FID (Final Investment Decision) for the second phases of the Atapu and Sépia oilfield developments. These fields, located offshore São Paulo and Rio de Janeiro, have been in operation since 2020 and 2021 respectively. At present, Atapu produces 150,000 barrels a day and Sepia 180,000 barrels a day. Production capacity will increase to 225,000 barrels per day for each field in the second phase, scheduled to start in 2029. Nicolas Terras, Senior Vice President Exploration-Production at TotalEnergies, said the decision marks a new stage in the company’s growth in Brazil.
“Brazil will soon represent more than 200,000 boe/d of net production,” he added, stressing the importance of these projects in maintaining TotalEnergies’ production above 200,000 barrels per day in this key country.
Partnerships and investment breakdown
TotalEnergies holds a 15% stake in the Atapu field and a 16.9% stake in the Sepia field, while Petrobras is the main operator with 65.7% and 55.3% respectively. Shell owns 16.7% of Atapu, and Petronas and QatarEnergy each own 12.7% of Sepia. This collaboration between major energy companies underlines the complexity and scale of these expansion projects. These investments are part of TotalEnergies‘ wider strategy to strengthen its presence in Brazil, a crucial market for the company. The decision to expand these oil fields comes despite warnings from the International Energy Agency in 2021, which had recommended against approving new oil and gas field projects beyond those already under development.
Production prospects and environmental challenges
Production from the Atapu and Sepia expansion phases is scheduled to start in 2029, increasing production capacity to 225,000 barrels per day for each field. This increase in production is essential for TotalEnergies to maintain its competitiveness and growth in the global energy market. However, these expansion plans are not without controversy. The CEO of TotalEnergies recently reaffirmed the need to develop new oil fields, despite growing concerns about the environmental impact of such projects. Critics point out that increasing oil production could contradict climate commitments and efforts to reduce greenhouse gas emissions.
Similar projects and TotalEnergies’ global strategy
In addition to the extensions in Brazil, TotalEnergies has announced the launch of a new oil project off the coast of Angola, with production scheduled from 2028 and a target of 70,000 barrels per day. These initiatives demonstrate the company’s commitment to diversifying and strengthening its global oil production, despite environmental challenges and regulatory pressures. TotalEnergies’ strategy emphasizes a balance between economic growth and environmental responsibility. The company has to navigate a complex landscape, where investments in fossil fuels are increasingly scrutinized and criticized by regulators and environmental activists.
The decision by TotalEnergies and Petrobras to expand the Atapu and Sépia oil fields is a major development for Brazil’s energy industry. These expansion projects should boost TotalEnergies’ production capacity and presence in the country. However, environmental challenges and persistent criticism of fossil fuel expansion will remain important issues for the future of these projects. As TotalEnergies continues to invest in major oil projects, the company will need to balance growth with sustainable and responsible practices to meet the expectations of regulators, investors and the public.
