Page 15 - LatAmOil Week 01 2022

LatAmOil NEWS IN BRIEF LatAmOil

Similar preliminary injunctions were also issued
to maintain the contractual conditions relating
to the distributors CEGÁS (Companhia de
Gás do Ceará), SERGÁS (Sergipe Gás SA) and
ALGÁS (Gás de Alagoas SA), whose respective
contracts also expire on December 31, 2021.
Petrobras clarifies that it meets its gas sales
contracts through a portfolio of offers made up
of domestic production and imports of gas from
Bolivia and LNG. The high demand for LNG
and limited international supply resulted in a
significant increase in the international price of
the input, which rose by around 500% in 2021.
For several months, Petrobras has been
engaged, in good faith, in negotiating new con-
tracts with several distributors. To offer better
conditions to customers, Petrobras offered nat-
ural gas distributors products with terms of 6
months, 1 year, 2 years and 4 years and contrac-
tual mechanisms to reduce price volatility, such per day of gas). The well test had to be curtailed BM-SEAL-10 Concessions, informs that it sub-
as, for example, reference indexes linked to LNG and shortened due to the high rates. The rig will mitted today to the National Agency of Petro-
and Brent, installment option and possibility of now be moved out and the well hooked up to the leum, Natural Gas and Biofuels (ANP), the
reducing volumes in longer term contracts. permanent oil production facilities at Tie to fully declarations of commerciality of the oil accu-
However, despite the negotiation process car- clean up and test the well. mulations located in the areas of the Discovery
ried out between Petrobras and the distributors, Jonas Lindvall CEO of Maha said: “We are Evaluation Plans included in these concessions.
as foreseen in any commercial relationship and very pleased with the preliminary results of this The BM-SEAL-4 and BM-SEAL-4A areas
in compliance with what is established in the vertical comingled free flow well test. The well were acquired in 2000, in the 2nd Bidding
Public Tenders, Petrobras was surprised by the test shows higher than anticipated productivity Round under a Concession Agreement. The
judicialisation of the matter. and since the flow was directed to the rig tanks, BM-SEAL-10 and BM-SEAL-11 areas were
Petrobras understands that these decisions rates had to be restricted. I anticipate we will acquired in 2004, in the 6th Bidding Round
undermine the legal security of the business have full oil flow test results towards the second under a Concession Agreement.
environment, interfering with the free formation half of January when the well has been tied in to In the declarations sent to the regulator, the
of prices, putting at risk the implementation of the permanent production facilities.” names suggested for the new fields were: Budião,
the opening of the natural gas market in Brazil As previously announced, Tie-4 was suc- Budião Noroeste, Budião Sudeste, Palombeta,
and the attraction of investments in the country. cessfully drilled, logged and cased as a vertical Cavala, Agulhinha, and Agulhinha Oeste.
To exemplify the competition that has dual zone producer. Final completion opera- Petrobras intends to develop production
emerged in the market, it is possible to mention tions have been executed on Tie-4 including the from the above fields in two modules, called
several pieces of news about the existence of running and function testing of the downhole Sergipe Deepwater (SEAP) I and II, which fore-
contracts effective from January 1, 2022, signed Electric Submersible Pump (ESP) on 3.5-inch see the installation of two FPSO-type platforms.
by distributors and free consumers with other production tubing. Subsequent to the running of The first platform, planned to serve the
suppliers, such as Shell, Petrogal, Potiguar E&P, the ESP, a short clean up flow test was executed to SEAP I module, will be the P-81, scheduled to
among others. flow back completion fluids and confirm initial start production in 2026, with capacity to pro-
In addition, these producers signed contracts well productivity. duce 120 thousand barrels of oil/condensate
with TAG to take their gas to the consumer Whilst slowly ramping up the ESP, the lim- and flow 8mn cubic metres of gas per day. The
market. its of the test facility were quickly reached and second platform, planned to serve the SEAP II
The Company will adopt all applicable legal at this point the ESP was stopped and the well module, is in the contracting planning phase and
measures in relation to the reported legal cases. was choked back and allowed to free flow. Test- is scheduled to start production after the 2022-
Petrobras, December 30 2021 ing was constrained at a small 24/68—inch to 2026 Strategic Plan horizon.
28/64-inch choke. The SEAP I and II modules include the
Maha Energy, January 2 2022 implementation of a new gas flow system con-
PROJECTS & COMPANIES necting the two production modules to the
Sergipan coast, with a capacity of 18mn cubic
Maha Energy announces Petrobras makes metres per day, which is in the planning stage,
declaration of
and scheduled to start operating after the 2022-
completion and preliminary commerciality in 2026 Strategic Plan horizon.
Petrobras is the operator of the BM-SEAL-4A
well test results from Tie-4 and BM-SEAL-10 concessions with 100% inter-
est, in the BM-SEAL-11 concession with 60%,
Maha Energy reports that a preliminary free Sergipe-Alagoas basin in partnership with IBV Brasil Petróleo Ltda.
flow well test and clean-up of Tie-4 yielded an Petrobras, as the operator of Consortia (40%), and in BM-SEAL-4 concession with 75%,
initial comingled and restricted flow rate of BM-SEAL-4 and BM-SEAL-11, and the sole in partnership with ONGC Campos Ltda. (25%).
approximately 936 boepd (825 bpd and 668 mcf owner of the rights to the BM-SEAL-4A and Petrobras, December 30 2021

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