The Kristiansand, Norway-based supplier, part of Schlumberger unit Cameron, will supply nine modules previously built for a project that was cancelled three years ago and lying at the Nymo yard in nearby Grimstad, Upstream’s sister publication Dagens Naeringsliv reported.

Statoil’s project leader for Peregrino, Geir Birkeland, was quoted as saying the phase-two project had been postponed in 2014 following the fall in oil prices but was now being revived as cost reductions related to the modules had made it commercially viable.

He said the estimated cost of Peregrino 2, located about 80 kilometres off Rio de Janeiro in the Campos basin, was now at around $3 billion following a 30% cut in the investment budget, while the break-even oil price had been reduced from $70 to between $40 and $45 a barrel.

The modules, with a combined weight of 5900 tonnes, were originally built for Brazilian player OSX before it went bankrupt, resulting in the contract being suspended.

They will now be modified by Cameron for the Peregrino 2 facility under the engineering, procurement and construction contract with Statoil, for which a value has not been disclosed, and are due for installation at the field in 2019.

The second phase of the project will tap the Peregrino South-East structure using the so-called WHP-C platform that will be installed in 120 metres of water and is due on stream in 2020.

The facility will provide additional capacity for between 40,000 and 45,000 barrels per day of oil from Peregrino South-East, adding 250 million barrels of recoverable reserves.

In all, 22 development wells — 15 oil producers and seven water injectors — will be drilled in phase two and later linked to the Peregrino floating production, storage and offloading vessel some 19 kilometres away.