Federal Government Approves Pilot Project for Exploration and Production of Oil and Natural Gas in Unconventional Reservoirs

The Federal Government Approved a Project for the Production and Exploration of Oil and Natural Gas in Unconventional Reservoirs. The Program Is Called Transparent Well and Was Qualified in May of Last Year

The Federal Government approved, this Thursday (30), a resolution from the National Energy Policy Council (CNPE) with guidelines for the installation of a pilot project called Transparent Well, which aims to create knowledge regarding the practices of oil and natural gas production and exploration in unconventional reservoirs. According to a statement from the Federal Government, the effects of the project may lead to the creation, on environmentally safe bases, of a new sector of the oil and natural gas industry in Brazil.

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Federal Government States That Data Collected from the Project Will Be Published Online

The resolution approved by the Federal Government provides for the creation and publication of a notice, within three months, for the qualification of oil and natural gas projects in unconventional reservoirs. Soon after, the notice will undergo a kind of public consultation.

There is also a recommendation for the National Agency of Petroleum, Natural Gas and Biofuels (ANP) to consider the investments made in the projects as eligible for mandatory investments in R&D (Research, Development, and Innovation) foreseen in concession contracts, in addition to the reduction of royalties related to oil and natural gas production in unconventional reservoirs.

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According to the Federal Government, all the data studied in the Transparent Well project will be posted online, allowing everyone to monitor and follow, from the stage before environmental licensing to the end of hydraulic fracturing operations and well drilling.

Brazil Ranks 10th in Shale Gas Production

According to the Federal Government’s statement, the monitoring of environmental parameters and operations will be conducted according to the best international practices, operational safety, and environmental preservation. Still according to the government, Brazil ranks 10th among countries with the highest potential volume of shale gas production in the world.

The effective execution of the Transparent Well Project, which aims to produce in unconventional reservoirs, will make it possible for Brazil to advance toward understanding the potential of unconventional petroleum resources in the country, in an environmentally safe manner, following the example of what occurred in countries like the USA, Canada, and China, which produce significant amounts of oil and natural gas in such reservoirs.

The Transparent Well was qualified in the PPI in May of last year, to support environmental licensing and other measures necessary for the project’s viability.

Jobs in the Oil and Gas Sector May Increase with New Investments

With signs of recovery post-pandemic, the oil and gas sector projects to generate up to 50,000 job openings in 2022. According to IBP, the optimistic scenario is driven by the sale of Petrobras assets.

The estimate is that production, which currently reaches the mark of 3 million barrels per day, will rise to around 5.4 million barrels per day by 2030, and for this to be possible, it is estimated that US$ 50 billion will be invested in the sector.