Perenco plans to increase Pargo production by 25% by the end of 2023

(epbr) Perenco announced this Wednesday the departure of the FSO Pargo platform from a shipyard in Dubai, in the United Arab Emirates, heading to the Pargo field, in shallow waters in the Campos Basin.

The unit is part of the concession’s production recovery project, which foresees investments of US$ 400 million and promises to increase the asset’s production by 25% by the end of the year, to an average of 15,000 barrels/day.

In addition to installing the platform, the cluster will receive two new pipelines — which will connect the Carapeba and Vermelho fields to the Pargo platform.

In addition, the recovery plan provides for intervention work in the wells, modernization of the water treatment system, operational resumption of the platforms Vermelho 1 and 2 and evaluation of the reservoirs for potential new drilling.

FSO Pargo is a platform that stores and transships oil. The double-hull vessel, built in 2004, has a storage capacity of 750,000 barrels and should arrive at the concession in March. The forecast is that the FSO will start operating in August.

The platform underwent conversion work at the DryDocks World shipyard, in Dubai, to extend its useful life by 20 years, in addition to adapting the unit to Brazilian standards and including modifications.

Pargo’s development plan, approved by the National Agency of Petroleum, Natural Gas and Biofuels (ANP) in 2021, foresees investments of US$ 400 million.

Perenco took over the Pargo cluster operation in October 2019 and, since then, has increased the asset’s production by more than four times, from 2,800 barrels/day to 12,000 barrels/day.

The cluster brings together the fields of Pargo, Carapeba and Vermelho. The company, which owns 100% of the assets, obtained an extension of the concession contract for the areas until 2040.

New dynamism in the sector

Pargo’s recovery plan is part of a broader movement to revitalize mature fields formerly operated by Petrobras, but sold by the state-owned company to independent producers.

Wood Mackenzie estimates that these independent operators will invest US$10 billion by 2027 to increase production from the assets purchased from Petrobras in recent years. The forecast is that these assets will reach a peak of 485,000 barrels/day in five years.

The consultancy’s survey includes production projects from the companies 3R Petroleum, BW Energy, Enauta, Eneva, Grupo Cobra, Karoon, Origin Energy, Perenco, PetroReconcavo, PRIO, Seacrest Capital and Trident Energy.

It predicts that these companies should increase by 980 million barrels of oil equivalent (boe) the total oil in the remaining reserves of these assets – a significant volume for those who are investing in projects to revitalize production.

This movement should contribute to the de-concentration of oil production in the country.

“We will see a significant change in the composition of production in Brazil. In 2015, Petrobras held 84% of all production. This level will drop to 61% by 2030, as the production of the majors and independent operators grows”, commented Amanda Bandeira, Upstream analyst at Wood Mackenzie for Latin America, at the time of the release of the report, in November 2022.

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