Group Led by Petrobras Drills First Well in the Peroba Pre-Salt Area

The Consortium of Petrobras, BP Energy, and CNPC Began Drilling Its First Well in the Brazil Offshore Pre-Salt Area of Peroba, Petrobras Said on Friday

The group acquired the area during the third pre-salt production sharing auction in Brazil in October 2017. “Peroba is the first of seven blocks acquired in 2017 and 2018 under the production sharing regime to begin drilling,” Petrobras said in a statement.

The start of drilling followed a wave of seismic acquisition activity that represented the first concrete advance in exploration activity after several years of stagnation due to a corruption scandal at Petrobras and the collapse in oil prices. Petrobras was joined by BP, Equinor, ExxonMobil, Shell, and Total, revitalizing portfolios of onshore and offshore areas during a significant reopening of Brazil’s oil patch over the past two years.

Peroba was considered one of the key areas available during the pre-salt production sharing auction, which triggered a heated bidding process from three separate consortia. Petrobras holds a 40% stake in the field, while BP owns 40% and CNPC holds 20%. The group paid a signature bonus of 2 billion reais (US$ 630 million) and ensured the government a 76.96% share of the oil profit to gain development rights for Peroba.

The National Petroleum Agency of Brazil estimated that the block held up to 5.3 billion barrels of oil, while the consulting group IHS Markit estimated that the region could store up to 1 billion barrels of recoverable reserves.

Peroba is located about 300 kilometers off the coast of the State of Rio de Janeiro. The block comprises an area of nearly 1,100 square kilometers, with water depths ranging from 2,100 to 2,600 meters, according to Petrobras. It is situated between the Lula Field to the north and the Sapinhoa Field to the west. Lula and Sapinhoa are the two largest producers of oil and natural gas in Brazil.

“The proximity to these fields, which are among the most productive in the pre-salt, indicates the high potential of the area,” Petrobras said.

Brazil has held six separate licensing sales since late 2017, including the fifth pre-salt production sharing auction in late September, after reform efforts established a fixed schedule for annual bidding rounds, opened pre-salt fields sold under production contracts to international operators, and reduced requirements for using locally produced goods and services in exploration and development. These sales are expected to boost Brazil’s crude oil production to 5.5 million b/d by the mid-2020s, up from about 3 million b/d currently.

Petrobras remains the largest stakeholder in the pre-salt, but has changed the company’s policy amid newly discovered freedom from government interference to share risks through strategic partnerships with several of the industry’s main players. The move to reduce risk included granting operational control of fresh area to Equinor, ExxonMobil, and Total, for example, in favor of minority stakes.

In total, Petrobras acquired stakes in 21 new exploration blocks in the production sharing and concession sales, the company said.

“These new projects contribute to strengthening Petrobras’ exploration portfolio, ensuring the sustainability of the company’s future production,” Petrobras stated about its recent purchases.

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