Queiroz Galvão to start production in 2018

 

Thursday, 03 August 2017

 

Queiroz Galvão Exploration and Production (QGEP) plans to start its first deep-water oil production in early 2018 at the Atlanta Field, in the post-salt area of ​​the Santos Basin. The delay in the project, according to QGEP CEO Lincoln Guardado, is due to the delay in the execution of the adaptation works of the platform ship (FPSO) chartered with Teekay Offshore.

The company is the operator of the block and has as partners of OGX, which has just closed its judicial recovery, and Barra Energia. QGEP is a company of the Queiroz Galvão group, involved in the investigations of Operation Lava-Jato. The executive ensures that the problems of the group did not affect the work of the consortium.

– We are not a reflection of the problems of Queiroz Galvão, but of those related to the economic scenario. We will be the first private Brazilian company to produce oil in deep waters – he said, noting that investments to develop the field are US $ 820 million.

OGX R $ 60 MILLION DEBT

According to Guardado, the company has pledged OGX’s investment share and expects reimbursement of R $ 60 million. The portion to be applied by OGX would add another R $ 150 million until the beginning of production. Still, the executive says the goal is to produce 20,000 barrels a day with two oil wells in the first quarter of 2018 and reach 30,000 barrels a day with the drilling of the third well. With the delay of the platform that will operate in the field, QGEP managed to reduce the charter to US $ 410 thousand per day, 15% lower than the original cost.

Source: Globo

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