Petrobras guarantees production target in 2019

May 9, 2019

Company to accelerate ramp-up of new production systems in the Santos Basin pre-salt

Petrobras will maintain its annual production target of 2.8 million boed in 2019, despite the drop recorded in the first quarter, oil company E & P director Carlos Aberto Oliveira said last Wednesday (8/5). The executive anticipated that, in the first days of May, the production already registered higher, staying above the target persecuted.

Oliveira pointed out that the oil company will accelerate the process of ramp-up of new production systems. The objective is to establish a one-year period to reach the production capacity of the units.

In early May, Petrobras finalized the P-74 ramp-up in the Búzios field in the Santos Basin, concluding the operation exactly one year after its start-up. The unit is interconnected to four wells, with a production of 150,000 b / d.

E & P’s director pointed out that in the last 11 months seven new production systems were put into operation, three in the first quarter of this year – P-76 and P-77 in the Búzios field, and P-67 in Lula – who helped offset the natural decline in the company’s total output. The ramp-up of these platforms will ensure, according to the executive, the annual production target.

Ramp-up campaigns throughout 2019 will be concentrated in the Búzios, Lula, Sul de Lula, Berbigão, Sururu and Tartaruga Verde fields. The work already has 86% of the wells drilled and completed.

Under the new systems, Petrobras estimates that the production of pre-salt at the end of the year will account for about 55% to 60% of the total volume extracted by the company. The current contribution is 49% (data from the first quarter).

The drop in production in the first three months of the year (down 4% year-on-year) was mainly due to the write-offs of the E & P divestment program – notably the sale of a 25% stake in the Roncador field to Equinor – and the largest number of scheduled platform stops.

The director of E & P said that the company and the Norwegian oil company are detailing the actions of the plan to increase the Roncador recovery factor, which predicts its increase from 28% to 34%. The total production of the asset in March was 194 thousand boed, being 167 thousand b / d of oil and 4.2 million m³ / d of natural gas.

Focus on Brazil

Despite the drop in production indicators, Petrobras was able to reduce E & P’s manageable operating expenses in the first quarter by 22% compared to the same period in 2018.

The president of the state-owned company, Roberto Castello Branco, reinforced that there are no investment plans abroad and that the company’s focus is on the pre-salt. Although recent statements by Minister of Mines and Energy Bento Albuquerque signaled the oil company’s entry into E & P Israeli auctions, Castello Branco said that there is currently no recourse and not even a strategy to turn a company global, only routine studies done by geologists.

“We do not want to repeat the mistakes of the past, where Petrobras has been investing in assets in North America, Africa, Bolivia, Argentina and Uruguay, where there are operations where the damage is certain. We have been there for almost 13 years, continuously losing money. (…) There is no change of policy, “said the executive.

The cost of producing the barrel in the pre-salt today is US $ 7 and, in the Transfer of Rights, it is even lower, said Carlos Aberto Oliveira.

Partnership

The E & P director informed that Petrobras plans to conclude in the second half of the year the details of the CNPC partnership in the Marlim cluster, which covers the Marlim, Voador, Marlim Leste and Marlim Sul fields in the Campos Basin.

Source: BE Petroleum

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