November 21, 2019
Impact of Campos Basin redevelopment on production, royalties and employment was discussed during the public hearing.
With a little over 40 years of operation, the Campos Basin faces a drop in production. It has already been responsible for over 80% of national oil activity. Today, the Campos Basin is responsible for 48% with a loss of $ 1.5 billion in the loss of royalty, according to data from the Brazilian Institute of Oil, Gas and Biofuel (IBP). Other issues that were discussed at a public hearing of the Mines and Energy Commission of the Rio de Janeiro State Legislative Assembly (Alerj), were the general revitalization of the Campos Basin, new pre-salt discoveries, production phase and new job opportunities, where representatives from IBP, the National Petroleum Agency (ANP) and Petrobras pointed to declines and new hopes for the future.
Because of its longevity, it is normal for the Campos Basin to have a slowdown in activity. Professionals in the area presented proposals in search of regulatory and technical measures that bring investments and increase the pace of production to generate income, revenue and employment.
In the short term, the ANP defended the revitalization of mature fields, exploration areas that, although still economically viable, are in decline in productivity because they already had much of their reserves explored.
ANP Development and Production Superintendent, Dr. Marcelo Castilho, presented approved development plan data estimated at U$ 28.9 billion, royalty reduction, revitalization, investments up to the year 2023.
The revitalization of the mature fields in the Campos Basin promises to inject a few billion dollars, which represents the opening of new jobs in the region.
“The Campos Basin has been the big winner in terms of bidding rounds since from 2017. Two years ago, the Campos Basin had 8 blocks resulting in a bonus of R$3.65 billion, this year it broke the record with over R$ 8 billion ”said Marcelo Castilho.
During the public hearing were discussed the fall in production which implies a fall in royalties revenue, the redevelopment as an alternative to decommissioning of the platforms, where 32 will cease its production until the year 2025 in Campos Basin. The U$ 8 billion cost to decommission all Campos Basin facilities with more than 25 years of operation or fields reaching the end of their economic life by the year 2025 was presented.
According to IBP, if nothing is done, the Campos Basin in 10 years could lose 3/4 75% of its production. If not recovered, the basin may return to the 1990s level in terms of production.
Petrobras drilled the first wells in Pargo in the 1970s and the peak of activity in the region was in the 1980s, with the last production wells drilled in the region at the Carapeba field in 1998. From then on, Petrobras made some campaigns in Pargo and Carapeba with exploration wells, being the last well drilled in 2011.
Since 2017, with the support of several oil industry companies, and even former Petrobras President Pedro Parente, Mayor Dr. Aluizio has been working with the federal government for the revitalization of mature fields. closer to becoming a reality in the region, generating jobs and income not only for Macaé, but also for the entire region, the state of Rio, and the country, as the oil and gas industry accounts for 13% of National Gross Domestic Product (GDP), according to January data this year.
Source: The Debate On
Brazil Energy Insight 
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