Page 16 - LatAmOil Week 17 2022

LatAmOil NEWS IN BRIEF LatAmOil

“We have worked to optimise the Maromba
development plan since the acquisition in 2019
and during the COVID-19 pandemic. This
includes technical evaluations, full-spectrum
analysis of geological, seismic and well data, as
well as extensive reservoir modelling and simu-
lations. Based on our findings, we have decided
to proceed with a development with six hori-
zontal production wells connected to a FPSO to
unlock significant oil production and long-term
value generation for our stakeholders,” said Carl
K. Arnet, the CEO of BW Energy.
A development in stages enables improved
reservoir monitoring and optimisation of the
second drilling campaign. Total oil production
at peak is expected between 30,000 and 40,000
barrels per day (bpd). The technical evaluation
revealed that water injection is not required for
the first three wells and is a contingency for the
second drilling campaign. see strong interest from various sources,” Arnet barrels of oil equivalent per day (boepd) to Ron-
Extensive work has also confirmed that Dual continued. cador, bringing daily production to approx-
Electric Submersible Pumps offer the best artifi- The FID is subject to completion of the imately 150,000 barrels per day (bpd) and
cial lift solution with extended life and reduced financing for the project. The Brazilian regula- reducing the carbon intensity (emissions per
workover frequency. The subsea layout has also tor, ANP, has approved the development plan barrel produced) of the field.
been enhanced to reduce costs and facilitate and the Company expects to receive full IBAMA Through this first IOR project, the partner-
future expansions. environmental approval in due course. ship will drill 18 wells, which are expected to
FPSO Polvo, “a near perfect fit” – The FPSO Maromba Field: Maromba is located off the provide additional recoverable resources of
Polvo recently ended its charter on the Polvo Brazilian coast in the Campos Basin in approx- 160mn barrels. Improvements in well design
field in Brazil, which is located close to the imately 160 metres of water depth. Nine wells and the partners’ combined technological expe-
Maromba field and has similar oil and reservoir were drilled in the license between 1980 and rience are the main drivers behind the 50% cost
characteristics. An assessment of refurbishment 2006, and oil was found in eight of these across reduction across the first six wells, including the
costs has been completed and discussions with various reservoirs. Gross 2C reserves in place two in production.
relevant shipyards are well underway. The FPSO are estimated at 467mn barrels with approxi- Roncador is Brazil’s fifth largest producing
will be designed for up to 10 production wells mately 100mn barrels estimated as recoverable asset and has been in production since 1999.
with 1.2mn barrels of storage capacity. The total volumes. BW Energy acquired 100% ownership Petrobras is the operator of the field (75% equity)
liquid capacity will be 85,000 bpd with oil pro- in Maromba in 2019 for a total of $115mn, of with Equinor (25% equity) entering the project
duction capacity of 65,000 bpd and water treat- which $85mn remains to be paid to the sellers at in 2018 as a strategic partner.
ment capacity of 75,000 bpd. predefined milestones. “We are very proud of what the partnership
BW Energy has signed an agreement to pur- The Company will provide further infor- between Petrobras and Equinor has achieved,
chase the FPSO from BW Offshore effective no mation on the Maromba development plan in delivering this project ahead of schedule and
later than July 24, 2023, for a total consideration connection with the first-quarter 2022 earnings below budget. This milestone demonstrates
of $50mn. The valuation of the FPSO has been release on May 27. the partnership’s ability to increase production
confirmed by an independent third party. The BW Energy, April 22 2022 and value through technology. We will continue
agreement to purchase the FPSO, instead of combining our capabilities to improve recovery
entering a traditional lease and operate contract, Petrobras and Equinor start from Roncador and extract further value from
is a consequence of related- and associated-party the field. Petrobras will leverage its experience
tax legislation in Brazil. production on IOR project as one of the largest deep-water operators and
Final Investment Decision (FID): “The FPSO pre-salt developers in the world and Equinor will
Polvo is a near perfect fit for Maromba. We know at Roncador, Brazil draw on its technology, expertise and decades of
the vessel well and have extensive in-house com- experience in IOR on the Norwegian Continen-
petencies and capabilities in planning and exe- Petrobras, the operator, and Equinor have suc- tal Shelf,” says Veronica Coelho, Equinor coun-
cuting such a repair and life extension project. cessfully started production from the first two try manager for Brazil.
Re-using existing energy infrastructure enables wells of the increased oil recovery (IOR) project In addition to the planned 18 IOR wells, the
reduced investments, shorter time to first oil at Roncador. This represents an important mile- partnership believes it can improve recovery fur-
and significantly reduced CO2 emissions in the stone in the development of the field, increasing ther and aims to increase recoverable resources
development phase as compared to installing recovery rates, adding valuable production and by a total of 1bn barrels of oil equivalent. The
new production assets,” said Carl K. Arnet. demonstrating the potential to leverage new field has more than 10bn barrels of oil equiva-
“We are also mindful of the inflationary pres- technology. lent in place, under a license lasting until 2052.
sures affecting our industry as we progress con- The two wells are the first of a series of IOR The strategic alliance agreement also includes an
tract discussions with the shipyards and for other wells to reach production. Start-up is almost energy efficiency and CO2 emissions reduction
long-lead items. We are also evaluating financing five months ahead of schedule and at half of the programme for Roncador.
alternatives for the field development plan and planned cost. The wells add a combined 20,000 Equinor, April 20 2022

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