Total said it had launched the second phase of development for the Mero project offshore Brazil, along with its partners, as the deep offshore oil project moves closer to getting off the ground.
“The decision to launch Mero 2 comes as a new milestone in this large-scale project that will develop the giant oil resources of the Mero Field, estimated at 3 to 4 billion barrels,” said Arnaud Breuillac, Total’s head of E&P.
The Mero 2 FPSO will have a liquid treatment capacity of 180,000 barrels per day and is expected to start by 2022.
Total said two further FPSOs of the same capacity would be added to the project subject to approval by the partners. All four producing units will be deployed in the northwestern part of the Libra Block.
The Mero 1 project, which is currently under development, was progressing as planned with a start-up expected in 2021, Total said.
Petrobras owns 40% of the Libra project, while Royal Dutch Shell and Total SA each own 20%. Chinese state oil companies CNOOC Ltd. and China National Petroleum Corp. Ltd. each hold 10% in the project.
Once the full potential of the field is developed, production should reach more than 600,000 barrels per day, Breuillac said in a statement.
Under the GSAs, EOG has agreed to sell natural gas to Cheniere over a period of approximately 15 years beginning in early 2020, with the quantity starting at 140,000 MMBtu/d and increasing to 440,000 MMBtu/d.
Before the attacks on Saudi Arabia's oil installations on Sept. 14, hedge fund managers had started to become more bullish, or at least less bearish, about the prospects for oil prices amid hope for a trade truce between the United States and China.
Major commodity exchange to begin trading as billion of new capital pour in.