February 7, 2020
Brazil will receive 10% of the Norwegian oil company’s investments in the next two years
Equinor plans to drill five high-impact exploratory wells in Brazil over the next two years, the company’s vice president and chief financial officer, Lars Christian Bacher, said on Thursday during a conference call with analysts.
High-impact wells are those that have the potential to find large discoveries, over 100 million barrels of oil or about 300 million m³ of natural gas.
In all, the oil company will allocate about 10% of its capex in 2020 and 2021 to the country, where it intends to produce by 2030, a volume between 300 thousand bopd and 500 thousand bopd.
This year, Equinor intends to submit to the ANP the plan for the first phase of development of the Bacalhau (Carcara) field, whose first oil is scheduled for 2023/2024. In addition, the second phase of the Peregrino field will begin in the Campos Basin.
The first phase of the wells with advanced oil recovery is planned for 2023 in the Roncador field, also in Campos. Three years later, it will be the turn of the Pão de Açúcar project, in the same basin, to start producing.
Equinor has a stake in 16 exploratory assets in the country, six of them as operator: C-M-539 (35%), in Campos; ES-M-598 (40%), ES-M-671 (35%), ES-M-673 (40%) and ES-M-743 (35%), in the Espírito Santo Basin; and the BM-S-8 (46.5%), in Santos.
The Norwegian oil company announced that it plans to reduce its net carbon emissions by at least 50% by 2050. In parallel, it plans to expand its renewable energy capacity tenfold by 2026, becoming a major in offshore wind energy. The company wants to achieve global carbon neutral operations by 2030.
“Equinor’s strategic direction is clear. We are developing as a broad energy company, taking advantage of the strong synergies between oil, gas, renewable sources, CCUS and hydrogen ”, said, in a note, the company’s president and CEO, Eldar Sætre.
The oil company intends to reduce the carbon intensity of its global oil and gas production to 8 kg per barrel of oil equivalent by 2025. Currently, the global average is 18 kg per barrel, according to a 2018 report by the International Association of Oil Producers and Gas.