Page 17 - LatAmOil Week 28 2020

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NEWS IN BRIEF
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Petrobras announces new production record at the Buzios field in the Santos Basin pre-salt
Petrobras reports that the platforms installed in the Búzios eld (P-74, P-75, P-76 and P-77), in the Santos Basin pre-salt, reached new produc- tion records on July 13, of 674,000 barrels of oil per day (bpd) and 844,000 barrels of oil equiva- lent per day (boepd).
e Búzios eld, discovered in 2010, is the largest deepwater oil eld in the world. It is a world-class asset with substantial reserves, low risk and low li ing cost.
Petrobras is the operator (90%) of the con- sortium in the Buzios eld, in partnership with CNOOC (5%) and CNODC (5%).
Petrobras, July 15 2020
Petrobras reduces cost of post-salt well construction
Petrobras has announced that in early July it completed, in half the time, the construction of the 7 GLF 49H ESS o shore well, in the Gol nho eld, in the Espírito Santo Basin, 100 km from Vitória. is was the rst post-salt well built with the application of the True One Trip Ultra Slen- der (TOTUS) concept, which consists of simpli- fying and reducing the time spent in the drilling and completion stages, based on optimisations and innovations inserted in the design and plan- ning phases.
e pioneering use of TOTUS allowed the completion of this first well in only 44 days
compared to the historical average of the eld of 96 days, resulting in a cost reduction of approxi- mately 50%, equivalent to $30mn. Petrobras can apply this new concept in its new wells, in several mature elds in the post-salt, in the period from 2021 to 2025, with potential for cost reduction between $20-35mn per well.
The TOTUS concept, developed and pat- ented by Petrobras, is part of the company’s e ort to nd technological solutions that aim to reduce costs in its activities in a safe and e cient way. e concept consists of drilling the well in only three phases (Ultra Slender) and the completion installed in a single maneuver (True One Trip), di erent from traditional con gurations (four or ve drilling phases and two or more manoeuvres to install the completion).
TOTUS can be used in certain mature elds of the post-salt where the geological and reser- voir characteristics favor its application. Petrobras, July 14 2020
Argentina: President
Energy provides drilling
and workover update
President Energy, the energy company with a diverse portfolio of production and explora- tion assets focused primarily in Argentina, has provided an update on its drilling and workover plans in Rio Negro Province, Argentina.
On June 15, 2020, the Company, inter alia, announced preliminary details of drilling and workover plans for Rio Negro to be commenced in H2-2020.
Since that announcement further progress has been made as follows:
Workovers of two wells are now expected to commence by end August 2020, both at the Estancia Vieja eld. e wells being EV-20 and
EV-x1 are not currently producing and the workovers are targeting total initial production of 3.5mn cubic feet (99,110 cubic metres) per day of gas and 50 bpd. Costs of these two workovers are, all factors being equal, currently estimated to be in the region of $750,000 in total for both workovers.
Drilling of the previously announced Las Bases LB-1001 development well is currently scheduled to commence mid- to end-Septem- ber 2020, with the drilling of the second well EVN-x1 projected to follow on and commence some 25 days therea er allowing for inter well site movements. As stated on 15 June, these wells are targeting a total initial production of 5.6mn cubic feet (158,600 cubic metres) per day of gas and 188 bpd with both chances of success estimated at 75%. Costs of these two new wells, are currently estimated on a completed basis (including attendant infrastructure) at $4.4mn in aggregate.
As EVN-x1 is targeting a new undrained structure within the larger Estancia Vieja eld, which could contain between 5-14mn barrels of oil-in-place and between 11-26bn cubic feet (311.5-736.3mn cubic metres) of gas initially in place, a success case would open up the possi- bility of some six follow on wells, of which ve would in such case target additional gas produc- tion and one additional oil production.
A er this drilling programme, President will then take time to review the results and re-com- mence drilling in Q1-2021.
Within H1-2021, President is planning to drill in Rio Negro two wells, one a develop- ment well and the other an exploration well on a recently identi ed structure in the southern part of the Puesto Flores/Estancia Vieja con- cession. The well, Vinderman ex-VI-x1 will target initial production of 300 boepd from an undrilled structure which could contain any- where between 4-12mn barrels of oil-in-place. e chances of success are adjudged at over 50%.
In a success case for the above wells, the ben- e cial upli impact on the level of proven hydro- carbon reserves and according net present value therefor will be material in the context of the Group’s current independent audited reserves in Argentina of 15mn boe proven (1P) and 25.9mn boe proven plus probable (2P).
In the light of the nature and proximity of drilling in September, the infrastructure work previously scheduled for June in relation to compressors and infrastructure has been re-im- agined and re-engineered so that the work will be carried out in parallel with the drilling to facil- itate the di erences in pressures and volume.
All the above work costs are projected to be paid from President’s own resources and cash flow without the requirement for additional borrowing beyond current levels.
President Energy, July 13 2020
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