Sharing contracts produced 9.3 million barrels of oil in the first half of 2020 – PPSA

Aug 12, 2020

The three contracts under production sharing regime – Mero Development Area, Entorno de Sapinhoá and Sudoeste de Tartaruga Verde – produced 9.3 million barrels of oil and 51 million cubic meters of natural gas (available for sale) in the first semester of 2020. The data are part of the Monthly Bulletin of Production Sharing Contracts prepared by Pré-Sal Petróleo and released this Wednesday (12). In that period, the Union was entitled to a share of 1.7 million barrels of oil and 18.4 million cubic meters of natural gas.

The Mero Development Area started production in November 2017. The Entorno de Sapinhoá went into production in November 2018; and Sudoeste de Tartaruga Verde, in December 2018. Since then, the accumulated production of the three contracts has been 40.6 million barrels of oil and 162 million cubic meters of gas.

Daily oil production

In June, the daily average of the total production of the three contracts was 46 thousand bpd, 26 thousand bpd in the Mero Development Area, 9 thousand bpd in Entorno de Sapinhoá and 11 thousand bpd in Sudoeste de Tartaruga Verde. This result was 9.5% higher than in May 2020 and 25.8% lower than in June 2019. The production of the Mero Development Area is the one that has the greatest weight in the results. In June, even though activities were interrupted for five days due to meteorological conditions (waves above four meters) and a drop in the main generation of the FPSO, production increased again.  After the stoppages at the end of April and May for the replacement of the 8 inch line with the 6 inch service line, production will remain limited until the second line, also 6 inches, is installed (forecast for the fourth quarter of 2020).

The Union was entitled to a production share of 8,700 bpd in June, with 3,900 bpd in the Mero Development Area, 4,800 bpd in the Entorno de Sapinhoá and 25 bpd in the Sudoeste de Tartaruga Verde, registering an increase of 70.6% compared to May 2020 and 13% compared to June 2019. The increase in the Union’s share in June was driven by the greater contribution from the Entorno de Sapinhoá, which generated a greater volume of surplus in oil to be shared.

Daily natural gas production

The Entorno de Sapinhoá and Sudoeste de Tartaruga Verde contracts registered total production with a daily average of 260 thousand m³ / day of natural gas, 176 thousand m³ / day in Entorno de Sapinhoá and 84 thousand m³ / day in Sudoeste det Tartaruga Verde. This result, when compared to May 2020, was 9.7% lower; however, it was 3.6% higher than in June 2019.

The average daily share of the Federal Government as a surplus in natural gas in June 2020 was 97 thousand m³ / day, referring to the Entorno de Sapinhoá (97,091m³ / day) and Sudoeste deTartaruga Verde (192m³ / day) contracts. The natural gas produced in Mero has not yet been commercially used.

The Monthly Bulletin of Production Sharing Contracts is prepared by the Pre-Salt Petroleo Production Development Superintendence based on the rules of the sharing contracts, the production and cost data provided by the operators and the  National Petroleum Natural Gas and Biofuels (ANP) reference oil prices.

Source: PPSA

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