Pioneer contract model for Peregrino

12/02/19

Equinor and Schlumberger will implement a pioneering contractual model in the Brazilian offshore, integrating drilling and well construction to the management of the rig that will operate in the second phase of Peregrino II, in the Campos Basin.

Rather than chartering a rig one owned by a rig operator, Equinor chose to commission the construction of its own equipment at the KiIngleside Shipyard in Texas and hire Schlumberger – who is already responsible for the wells of the project- to operate it .

Estimated at $ 200M – Schlumberger did not report the amount for confidentiality reasons – the contract will last for 10 years, starting October next year.

“We are creating a business model to unify rig service providers with all well construction services. This will allow the optimization of topside equipment, many of which are manufactured by Cameron, “says Schlumberger’s country manager in Brazil, Mario Faria.

“We are talking to other companies interested in financing the construction of other similar rigss to work on the same model,” says the executive.

2019 Perspectives

Faria believes that the sector is going through the end of a transition period. “We do not expect large immediate increases in the market, which is one of the lowest in recent years,” he notes.

In terms of wells, some of the main expectations revolve around the bids of Mero 2 (nine wells) and Lapa 2 (Total) and Gato do Mato Sul (Shell), which must demand between four and eight wells in each case.

Schlumberger has a strong presence in the well intervention part, but in the face of slowing demand, it decided to decompile the Deep Stim I Well Stimulation Vessel (WSV) and maintain Deep Stim II in cold stack. Both vessels had been operating for Petrobras, but their contracts had come to an end.

In subsea, in addition to ongoing processes such as tenders for Mero 2 wet Christmas trees (ANMs) and manifolds for Marlim Revitalization, the company is eyeing demands for Lapa and Carcará in the Santos Basin.

After conducting the well abandonment operation at the Tubarão Martelo field, operated by Dommo, Schlumberger is waiting for new projects in the area, such as a Petrobras pilot that foresees the abandonment of three wells.

R & D

The company is currently developing six research projects focused on reservoir characterization and optimization of drilling processes at its technology center in Ilha do Fundão, Rio de Janeiro. According to Faria, on-site activity should intensify as new operators expand their operations in Brazil.

Source: Brazil Energy Magazine

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