Page 12 - LatAmOil Week 21 2022

LatAmOil BRAZIL LatAmOil

It is worth noting, though, that the latest maintaining its legal right to set its own policies
shake-up in the NOC’s C-suite follows closely and prices independent of government control.
on the heels of the president’s dismissal of Mines (The president has proposed that the NOC use
and Energy Minister Bento Albuquerque, who its profits to offset the cost of such measures,
had been among Coelho’s most prominent while Petrobras says profits must be invested to
supporters. Albuquerque, like Coelho, is being ensure future production.)
succeeded by an Economy Ministry alumnus. In This challenge has remained as sharp as ever
Albuquerque’s case, that replacement is Adolfo over the last week. World oil prices have stayed
Sachsida, who served as head of the Economy above $100 per barrel while trending upwards,
Ministry’s Special Advisory for Strategic Affairs so consumers have little hope of seeing a sus-
division until May 11. tained drop in pump prices for diesel and other
Assuming that Paes de Andrade does fuels any time soon. Instead, they are seeing
become the next leader of Petrobras, he will higher fuel prices lend extra momentum to
be the company’s fourth CEO in the last two inflation. Nevertheless, Petrobras has brushed
years. As such, he will be faced with the chal- off another round of pleas to sell fuel more
lenge that has been driving all the personnel cheaply, saying that with world energy markets
changes – namely, the gap between Bolsonaro’s in such a bullish state, it must keep revenues up
public demands that Petrobras lower the retail to ensure the country’s ability to import enough
price of fuel in order to provide some economic fuel to cover domestic demand – or risk wide-
relief to the public and Petrobras’ insistence on spread shortages during the harvest season. ™

Equinor, ExxonMobil near decision

on Bacalhau expansion project

THE Norwegian oil company Equinor and its
US-based partner ExxonMobil are moving
toward a decision on an $8bn upstream expan-
sion project in Brazil, according to a Reuters
report.
Equinor informed Reuters last week that the
two companies were looking to boost produc-
tion levels at the Bacalhau oilfield, located in the
pre-salt section of the Santos basin off the coast
of Brazil. With reserves in excess of 1bn barrels,
Bacalhau is Equinor’s largest project outside
Norway. ExxonMobil also sees the field as a
growth opportunity, as this project will allow it
to produce its first barrel of oil offshore Brazil
while also opening up a new and lower-carbon
source of oil supplies.
ExxonMobil and Equinor will use an exist-
ing floating production, storage and off-loading
(FPSO) vessel that has already been installed at
Bacalhau for production to launch the Phase 1
project. That FPSO has a production capacity of
220,000 barrels per day (bpd) and is due to begin
production within the framework of this project
in 2024.
Phase 2 of the expansion scheme is likely to The expansion project is due to come on line in 2024 (Image: Equinor)
include the installation of a second drilling rig at
the field, as well as a second FPSO, three sources that pre-drilling work at the Phase 1 expansion
close to the discussions informed Reuters. It wells was scheduled to begin in the third quarter
may also entail the construction of a 100-mile of this year.
(160-km) gas pipeline, the sources said. The Norwegian company also said there
ExxonMobil and Equinor did not confirm were plans in place to drill a new appraisal well
the sources’ statements, but an Equinor spokes- in the northern section of the Bacalhau field in
person said that the company was assessing a order “to better understand the reserves base for
contract award for the second drilling rig and the Phase 2 development.”

P12 www. NEWSBASE .com Week 21 26•May•2022