Uncategorized

Camarupim and Camarupim Norte without extension

7/16/18

Request for extension is denied, and Petrobras discusses subsea to shore alternative for the project

By Claudia Siqueira

ANP’s Board of Directors denied Petrobras’ request to extend the deadline for the production of the Camarupim and Camarupim Norte offshore gas at the Espírito Santo Basin.

In addition to requesting a postponement until January 2023, the oil company submitted to the agency a technical report contemplating two different alternatives to resume production, one foreseeing the return of the FPSO Cidade de São Mateus and another one based on the design of subsea to shore.

Although it rejected the oil company’s request, the agency stated that the deadline will be re-evaluated and redefined after the development plans are presented. Petrobras also requested postponement of the deadline for reviewing the plans for the two assets for December 2019, but the request was denied. The regulator opted to extend the deadline until December 31, before the original date of July 31.

Under the agreement established with the ANP previously, Petrobras has until July 2019 to resume production of the project. The two fields have not been producing since 2015, when an explosion occurred at the FSPSO Cidade de São Mateus, owned by BW Offshore, which resulted in the deaths of nine people.

The technical option of subsea to shore will require, if confirmed, an extra investment of about US $ 300 million. The two fields are operated by Petrobras, and in Camarupim the company has 100% of the concession and in Camarupim Norte, 65%, with Ouro Preto as partner (35%).

The definition of the development plan has generated internal divergences. Petrobras has been more favorable to subsea to shore, while Ouro Preto defends the lowest cost solution for it, ie the return of the BW production unit.

The problem is linked to discussions involving Petrobras, BW and insurance companies. The fixed maintenance cost of the stationary asset is about US $ 8 million per year. Ouro Preto, due to its smaller size, has greater urgency in the resumption of the project.

Petrobras also analyzed other technical alternatives, such as a jacket, the interconnection to FPSO Cidade de Vitória, in operation in the neighboring field of Golfinho, and the installation of a smaller FPSO.

The FPSO Cidade de São Mateus produced, before the incident, approximately 2 million m³ / d of gas via eight wells. The unit is in Singapore at Keppel’s shipyard, but so far the repair work has not started.

The contract to charter the FPSO with Petrobras was extended until 2019.

Categories: Uncategorized

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