Western Europe: France

WESTERN EUROPE

France

In step with the industry’s "bigger is better" philosophy, the merger of TotalFina and Elf Aquitaine intoTotalFina-Elf in 2000 created the world’s fourth largest oil company, and fulfilled France’s long-held ambition to consolidate its two creations. Global impact of the merger remains to be seen.

Licensing. Overall, exploration acreage decreased 21% (to 15,156 sq mi from 19,164 sq mi, and to 33 permits from 38 permits). This decrease is due largely to the release of a Mediterranean offshore (Gulf of Lions) permit. Onshore, acreage decreased only 3%; the relinquishment of 11 permits was compensated by the granting of six new tracts in Aquitaine, the Paris basin and the east of France (Jura chain).

Exploration. According to Jean Soler, agent for the Hydrocarbon Conservation Service at the French Ministry of Economy, Finance and Industry (MEFI), expenditures increased 55%, but in absolute terms, the $12-million figure is far from previous levels. Seismic acquisition remained at a very low level in 2000 (0.9 crew-months, against 0.3 in 1999). The main event in 2000 was a third seismic survey by Gulf-Mobil in the area of St Pierre and Miquelon islands (French overseas territories), south of Newfoundland, where an exploration well is planned for 2001.

After a year in which operators drilled no exploration wells, two wildcats were drilled in 2000 in the Paris basin: one by French company Coparex, the other by Vermilion REP, a French subsidiary of a Canadian firm. Both were dry holes.

While major oil companies may consider France’s exploration and drilling opportunities uninspiring, Didier Houssin, director of hydrocarbons for MEFI, says companies seeking onshore oil and gas deposits of 10 MMboe can still profit.

Development / production. Expenditures increased 59% (to $64 million from $40 million in 1999). The recovery of development drilling was strong, with a total of 103,000 ft drilled (up from 45,000 ft), and 10 wells, including nine new locations (up from three wells in 1999).

This drilling activity was evenly balanced between the Paris basin and the Aquitaine basin, with one additional well in the Rhine Graben (Alsace). The main drilling operators in 2000 were Vermilion REP and EssoREP (ExxonMobil subsidiary).

Field work slowed the decline of the main producing fields, but oil and condensate production was still down 7.8%, to about 32,000 bpd, and marketed gas volume was down slightly (to about 281 MMcfgd).

Geographically, 52.5% of oil production comes from the Paris basin and 47 % from the Aquitaine basin. Gas is mainly produced in Aquitaine (93% of French raw gas output).

The main oil producers are Essorep (32%), Elf-AEPF (TotalFinaElf subsidiary, 27%), Vermilion REP, (18%), and the French companies Coparex (12%) and Géopétrol (5%). Concerning natural gas, the main producer is Elf-AEPF, which operates the two main fields (Lacq and Meillon).