September 18, 2008
Total Farms into Bemolanga License Onshore Madagascar
French integrated energy major Total has signed an agreement with Madagascar Oil to farm into the heavy oil Bemolanga license onshore Madagascar with a 60% interest.
Located onshore in western Madagascar, the 6,500-square-meter Bemolanga license was awarded to Madagascar Oil in 2004. The license contains heavy oil in place that were evaluated at 10 billion barrels during earlier drilling operations and that can be developed using mining technology.
Following the transaction, Total will operate the license. During the initial appraisal phase, additional core drills will be drilled to determine the license's potential. A production pilot will be set up in a second phase to confirm the development parameters before considering a large scale development of the license.
Taking advantage of its experience acquired in Venezuela and in Canada where the group already holds significant resources of heavy oil, Total is expanding its development strategy in this segment of the industry. Total is already active in Madagascar in marketing, aviation fuel and petroleum product logistics.