QGEP signs rig for Atlanta

9/17/18

Queiroz Galvão Exploration & Production (QGEP) will close a deal with Queiroz Galvão Oil & Gas (QGOG) to charter the Laguna Star drill rig. The rig will drill the third well of Atlanta’s anticipated production system in the Santos Basin. The deal between the two companies in the same group should be formalized next week.

The Atlanta field campaign will begin in the first quarter of 2019. QGEP’s goal is to link the third well to FPSO Petrojarl I in the next quarter, bringing the system’s output from 27,000 boe / day to 30,000 boe / day.

The Laguna Star will be chartered initially for three months. There is a possibility, however, that QGEP will use the unit in the campaign to replace the internal Baker pumps of the two wells in operation. The equipment presented technical problems and is not operating. The exchange is scheduled for the second quarter and should take three months.

QGOG presented the best proposal in the QGEP tender. Domestic and foreign drilling companies were invited, but from the outset QGOG was seen as a favorite.

Capable of operating at a water depth of 3,000 m, Laguna Star is currently operating for Petrobras and will have its contract finalized in October. The unit has been operating for the oil company since 2012.

QGEP operates the Atlanta field and holds a 30% stake in the asset, in partnership with Barra Energia (30%) and Dommo Energia (40%). QGEP and Barra are in court against Dommo, which for two years has not honored the consortium’s financial commitments. The suit is being discussed in international arbitration.

Source: Brazil Energy

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