Shallow Water Campos Basin may attract independents – Permanent Offer

Aug 19, 2019

The offer of 15 exploratory blocks in the SC-AR4 sector in shallow waters of the Campos Basin may attract the interest of independent oil companies registered in the Permanent Offer. The blocks are near the fields of Polvo, operated by PetroRio, and Peregrino, operated by Equinor, which is not registered in the auction.

Despite focusing on production rather than exploratory assets, PetroRio may be interested in seeking upside for the Polvo project and is therefore seen as a strong candidate to participate in the auction.

PetroRio announced in February a new campaign in 2019 for the drilling of four wells in the Polvo field revitalization project in the shallow waters of the Campos Basin. The company has mapped 22 potential prospects in the offshore field region and if all 18 other boreholes are drilled it should invest around $ 60 million in the project. Each drilling campaign should last about two months.

“We believe in extending Polvo’s life to 2030 and further reducing the cost per barrel if the result is similar to last year’s. We are working hard to plan this campaign to achieve good results, ”says Nelson Queiroz Tanure, PetroRio’s CEO.

Shallow water projects have been the focus of Karoon, which operates in the Santos Basin operating exploratory blocks and development projects. The company just bought from Petrobras the Baúna field, in shallow waters of the Santos Basin. The state-owned company sold 100% of the area, which was also disputed by PetroRio.

Karoon also operates shallow-water oil discovery blocks in the southern Santos Basin, where they have a small-port FPSO installation project. The company has been looking for a partner for the project a few years ago.

Bauna began production in February 2013 with peak production above 76,000 barrels per day in September 2013. Currently it produces about 19,000 barrels per day, but Karoon estimates it can raise production to 33,000 barrels per day to 2022

The production system consists of six producing wells, three water injection wells and one gas injection well, interconnected with the FPSO Cidade de Itajaí, a production unit chartered with the Teekay / Ocyan consortium, with a processing capacity of 80,000 barrels. per day.

Other foreign independents with or without operations in the country, such as Capricorn and Wintershall DEA, and Murphy Exploration may see opportunities in shallow water assets in the region.

Source: epbr

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