New Business Horizon for Natural Gas in Offshore Block of Campos Basin: Associative Agreement Between Equinor and Repsol Sinopec Approved

Associative Contract Between Equinor and Repsol Sinopec Approved Without Restrictions by the Administrative Council for Economic Defense (Cade)

Equinor and Repsol Sinopec are cleared to manage business for part of the natural gas reserves of block BM-C-33, in the offshore Campos Basin. The associative contract between the two global oil giants was approved this Tuesday (03/08) by the Administrative Council for Economic Defense (Cade).

Read Also

• Flotel OOS Tiradentes Returns to Work for Petrobras in the Campos Basin This August for Offshore Campaign of Platform P-40
• PetroRio Receives ANP Approval and Becomes Dominant Operator of Tubarão Martelo Field in the Campos Basin
• Incentives for the Oil and Natural Gas Sector Have Errors That Hinder Their Application

According to the companies, the block in the Campos Basin is in the commercial viability assessment phase and that future activities of the concession are significantly influenced by the recognition of economically viable means for marketing natural gas production.

“The operation encompasses the joint prospecting and evaluation of potential clients, as well as the establishment of commercial conditions to be observed for joint negotiation, which may result in the formalization of long-term gas supply contracts (‘gas sales agreements’ or ‘GSAs’), individual for each applicant,” the oil companies stated.

Cade Sees No Risks to Competition in the Natural Gas Market

Cade explained that it sees no risks from the association between the companies on competition impacts, considering “the tiny market shares in the natural gas production of the Repsol Group and Equinor Group in Brazil.”

Equinor and Repsol Sinopec informed the agency that the long-term sale of gas reserves from the block should have a “direct impact” on their ability to make viable the investments needed for developing commercial discoveries in the concession.

The Offshore Asset BM-C-33 Operated by Equinor and Other Companies in the Campos Basin

Equinor has been operating since September 2016 and holds a 35% stake in block BM-C-33, located 2,900 meters below the water surface in the Campos Basin. The block was acquired in the seventh bidding round (in 2005) and the partnership also includes Repsol (35%) and Petrobras (30%).

In the block, currently in the exploration phase, three discoveries have been made in the pre-salt: Seat (2010), Gávea (2011), and the major gas and condensate discovery of the Pão de Açúcar prospect, announced in 2012.

A total of four offshore evaluation wells have been drilled in the block, confirming a total recoverable hydrocarbon volume estimated at around 1 billion barrels of oil equivalent.