Oil Companies Exxon and Equinor Plan to Invest 8 Billion Dollars in Oil Extraction at the Bacalhau Field in the Santos Basin

Written by Roberta Souza

Published on 02/06/2021 at 16:32

Plataforma de petróleo e logo da Equinor e Exxon/ Fonte: Reprodução

Seja o primeiro a reagir!

The First Oil Extraction from the Field in the Santos Basin, Operated by Equinor, Exxon, and Petrogal, is Expected in 2024

Yesterday, oil companies Equinor, ExxonMobil, and Petrogal Brasil announced that they will move forward with the development of the oil discovery at the Bacalhau field in the Santos Basin, with investments of around US$ 8 billion. The first oil from the field, which will be operated by the Norwegian Equinor, is expected in 2024, and production is projected to reach 220,000 barrels per day, the companies said in a joint statement. See also: Exxon, Enauta, and Murphy Oil Companies to Drill First Oil Well in the Sergipe-Alagoas Basin Next Semester

Bacalhau Field in the Santos Basin – Exxon, Equinor, and Petrogal

In 2012, Equinor acquired the oil asset from Petrobras (located in the pre-salt polygon) for most of the project – discoveries of Carcará and Guanxuma – present in the BM-S-8 concession agreement. Subsequently, an extension of the field in the Carcará North area was contracted under the sharing regime.

The development plan was approved by the National Agency of Petroleum, Natural Gas, and Biofuels (ANP) in March 2021. Equinor operates the project with 40%, ExxonMobil holds 40%, and Petrogal Brasil holds the remaining 20%. The state-owned Pré-sal Petróleo SA (PPSA) acts as the representative of the Union in the sharing agreement.

ARTICLE CONTINUES BELOW

Exxon, Equinor, and Petrogal Oil Field Has Low Break Even

Veronica Coelho, executive in charge of Equinor’s operations in Brazil, says that the Bacalhau oil field in the Santos Basin is an important step in realizing the strategic ambition to deepen their presence in Brazil. Coelho adds that it is a significant project for the country as it represents substantial investments, with a cascading effect on the supply chain and the creation of local jobs.

Arne Sigve Nylund, executive vice president for Projects, Drilling, and Procurement at Equinor, states that the Bacalhau field is a globally competitive project with a break even below $35 in a key energy region. According to him, the estimated recoverable reserves for the first phase are over one billion barrels of oil.

First Oil Extraction from the Field in the Santos Basin

The expectation is that the first FPSO from the oil field in the Santos Basin will begin operations in 2024. The multinational MODEC has been contracted to build the unit, and a second platform may be ordered – the decision announced on the 1st pertains only to the first FPSO. The unit was contracted under a BOT (build, operate, transfer) modality. In addition to building the unit, MODEC will operate the platform for one year, after which Equinor will take over with its own personnel.

The Bacalhau oil field is situated between two licenses, BM-S-8 and North Carcará. The resource is a high-quality carbonate reservoir, containing light oil, with minimal contaminants. The drainage network plans to connect 19 subsea wells to the floating production, storage, and offloading (FPSO) unit, with a capacity to process 220,000 barrels of oil per day. All gas produced in this first phase will be injected into the reservoir.

Oil Companies Exxon and Equinor Plan to Invest 8 Billion Dollars in Oil Extraction at the Bacalhau Field in the Santos Basin

The First Oil Extraction from the Field in the Santos Basin, Operated by Equinor, Exxon, and Petrogal, is Expected in 2024

Bacalhau Field in the Santos Basin – Exxon, Equinor, and Petrogal

Exxon, Equinor, and Petrogal Oil Field Has Low Break Even

First Oil Extraction from the Field in the Santos Basin

The oldest tree in the world, alive since before the birth of Jesus Christ, is cut down in a scientific study and the case changes environmental preservation rules.

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

While in Brazil a 10-story building takes 2 years to complete, in China a company stacks pre-fabricated modules and raises the entire building in just 28 hours and 45 minutes.

An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

With 7.4 trillion tons of artificial snow pumped in 10 years, an extreme operation could stabilize the West Antarctic ice sheet and prevent a sea level rise of more than 3 meters, but it would require snow cannons, ocean water, and energy on an almost industrial scale at the end of the world.

Peru built a tunnel at an altitude of 4,738 meters cutting through the Andes Mountains, and the road leading to it reaches 4,818 meters, making it the highest paved road in the entire world.

A study reveals that climbers who reach the summit of Everest breathe only 30% of the oxygen available at sea level and may return with atrophy of the cerebral cortex, concentration difficulties for weeks, and possible neurological damage associated with extreme altitude.

Brazil becomes a member of the IEA and could become a protagonist in ocean energy by accessing advanced technologies, attracting international capital, and accelerating the transformation of the energy matrix.

The Brazilian government and Spain signed a strategic agreement on critical minerals this week and accelerated plans to attract investments, dominate essential technologies, and position Brazil as a competitive hub in the new global economy.

Weighing less than 250 grams and comparable in size to a smartphone, a microdrone with 3D-printed propellers reaches 340.78 km/h and enters the Guinness World Records as one of the fastest electric quadcopters ever built.

China imposes billion-dollar fines on seven e-commerce platforms after violations in food delivery and pressures the sector to correct flaws that affect trust, food safety, and consumer experience.

Oil Companies Exxon and Equinor Plan to Invest 8 Billion Dollars in Oil Extraction at the Bacalhau Field in the Santos Basin

The First Oil Extraction from the Field in the Santos Basin, Operated by Equinor, Exxon, and Petrogal, is Expected in 2024

Bacalhau Field in the Santos Basin – Exxon, Equinor, and Petrogal

Exxon, Equinor, and Petrogal Oil Field Has Low Break Even

First Oil Extraction from the Field in the Santos Basin

The oldest tree in the world, alive since before the birth of Jesus Christ, is cut down in a scientific study and the case changes environmental preservation rules.

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

While in Brazil a 10-story building takes 2 years to complete, in China a company stacks pre-fabricated modules and raises the entire building in just 28 hours and 45 minutes.

An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

With 7.4 trillion tons of artificial snow pumped in 10 years, an extreme operation could stabilize the West Antarctic ice sheet and prevent a sea level rise of more than 3 meters, but it would require snow cannons, ocean water, and energy on an almost industrial scale at the end of the world.

Peru built a tunnel at an altitude of 4,738 meters cutting through the Andes Mountains, and the road leading to it reaches 4,818 meters, making it the highest paved road in the entire world.

Iran said that the Strait of Hormuz is open, but in practice only 1 non-Iranian oil tanker managed to cross in 24 hours — before the blockade, 100 ships passed per day.

Petrobras completes 1,300 hours of work and 15 km of subsea lines to connect the Búzios 90 well to the P-79 — the platform is ready to produce 180,000 barrels per day and is just awaiting ANP approval.

Iran declares the Strait of Hormuz completely open this Friday, and the price of oil plummets nearly 10% in a few hours — the largest drop since the beginning of the conflict.

While the world was paying more for fuel, the 100 largest oil companies on the planet raked in an extra $23 billion in just 30 days of blockage in the Strait of Hormuz.

Petrobras buys 75% of Oranto and becomes the operator of block 3 in São Tomé and Príncipe, resuming its strategy in Africa to diversify its portfolio and replenish oil and gas reserves.

A study reveals that climbers who reach the summit of Everest breathe only 30% of the oxygen available at sea level and may return with atrophy of the cerebral cortex, concentration difficulties for weeks, and possible neurological damage associated with extreme altitude.

Brazil becomes a member of the IEA and could become a protagonist in ocean energy by accessing advanced technologies, attracting international capital, and accelerating the transformation of the energy matrix.

The Brazilian government and Spain signed a strategic agreement on critical minerals this week and accelerated plans to attract investments, dominate essential technologies, and position Brazil as a competitive hub in the new global economy.

Weighing less than 250 grams and comparable in size to a smartphone, a microdrone with 3D-printed propellers reaches 340.78 km/h and enters the Guinness World Records as one of the fastest electric quadcopters ever built.

China imposes billion-dollar fines on seven e-commerce platforms after violations in food delivery and pressures the sector to correct flaws that affect trust, food safety, and consumer experience.