The consortium of Petrobras, BP Energy and CNPC has started drilling its first well in the pre-salt area of offshore Brasil 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 start drilling” , Petrobras said in a statement.
The start of drilling followed a wave of seismic acquisition activity that represented the first concrete breakthrough in exploration activity after several years of stagnation caused by a corruption scandal at Petrobras and the collapse in oil prices. Petrobras is joined by BP, Equinor, ExxonMobil, Shell and Total, revitalizing onshore and offshore portfolios during a major reopening of Brazil's oil patch over the past two years.
Peroba was considered one of the main available areas during the pre-salt production sharing auction, which triggered a heated bid by three separate consortia. Petrobras holds a 40% stake in the field, while BP has 40% and CNPC, 20%. The group paid a 2 billion reais ($630 million) signing bonus and guaranteed the government a 76,96% share of the oil profit to gain development rights for Peroba.
Brazil's National Petroleum Agency estimated that the block held up to 5,3 billion barrels of oil, while consultancy group IHS Markit estimated that the region could store up to 1 billion barrels of recoverable reserves.
Peroba is located about 300 kilometers from the coast of the State of Rio de Janeiro. The block comprises an area of almost 1.100 square kilometers, with water depths of 2.100 to 2.600 meters, according to Petrobras. It is between Campo Lula to the north and Campo Sapinhoa to the west. Lula and Sapinhoa are the two largest oil and natural gas producers in Brazil.
“The location close to these fields, which are among the most productive in the pre-salt layer, indicates the high potential of the area”, said Petrobras.
Brazil has held six separate licensing sales since late 2017, including the fifth pre-salt production sharing auction in late September after reform efforts set a fixed timetable for annual bidding rounds, open pre-salt sold under production contracts to international operators and reduced requirements to use locally produced goods and services in exploration and development. The sales are expected to boost Brazil's crude oil production to 5,5 million b/d by the mid-2020s, up from around 3 million b/d currently.
Petrobras remains the biggest stakeholder in the pre-salt, but has changed company policy amid new-found freedom from government interference to share risks through strategic partnerships with several key players in the industry. The move to reduce risk included granting operational control of fresh acreage to Equinor, ExxonMobil and Total, for example, in favor of minority stakes.
In total, Petrobras acquired stakes in 21 new exploration blocks in production sharing and concession sales, the company said.
"These new projects contribute to the strengthening of Petrobras' exploration portfolio, ensuring the sustainability of the company's future production," said Petrobras about its recent purchases.
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