Page 8 - LatAmOil Week 44 2019

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He was speaking during a panel discussion on the application of new technologies and digital transformation.
Pereira de Oliveira did not say exactly how or when Petrobras hoped to achieve this goal. But he did speculate about the possibility of eliminating the need for exploration drilling to confirm the size and extent of oil reservoirs in new fields. “What if we’re sure the oil was there without drilling the exploratory well? That’s an ambition,” he remarked.
If Petrobras succeeds on this front, he added, it could have a disruptive effect on the upstream oil industry. This would be a positive develop- ment, he said, because the fall in oil prices since 2014 has made cost a much more important
consideration.
“Now, with the price of a barrel falling, we
must be more cautious,” he said. “We have a lot of technology and innovation that allow us to take this step in reducing time and money.”
Pereira de Oliveira was speaking shortly after Petrobras’ CEO Roberto Castello Branco said that the NOC needed to take steps to ensure its own viability.
The industry is under significant financial pressure, especially since the days when oil com- manded a price of $100 per barrel “are history”, he said during the OTC conference. Under these circumstances, he said, Petrobras must be ready to “face the competition” from other players in the oil and gas sector. ™
FALKLAND ISLANDS
Falkland Islands authorities extend licences for two offshore blocks
THE government of the Falkland Islands has agreed to extend the terms of two agreements on the exploration and development of two off- shore blocks.
Earlier this week, it granted a request from Premier Oil and Rockhopper Exploration for an extension of the licence for PL032, a block lying in the North Falkland Basin. The licence had been due to expire on April 15, 2020, but will now remain valid until May 1, 2021.
The parties did not have to make any addi- tional commitments under their licence agree- ment to secure the extension, Rockhopper said in a statement.
The UK-based company has a 40% stake in the PL032 block, which is expected to require investments of $1.8bn. Premier Oil, another British company, owns the remaining 60% and serves as operator of the project. The partners have said they hope to make a final investment decision (FID) on the development of the site within the next year. This would allow them to achieve first oil about three and a half years after FID.
Premier Oil and Rockhopper intend to use a floating production, storage and off-loading (FPSO) vessel to extract crude from Sea Lion. The first phase of the block holds about 250mn barrels and may eventually yield 85,000 barrels per day (bpd).
Rockhopper issued its statement shortly after Argos Resources, which is based in the Falkland Islands, reported that it had also secured an extension of its licence for PL001, a block that lies adjacent to Sea Lion. The 18-month exten- sion will push the date of the second term of the licence’s expiration back to May 1, 2021.
Like Premier and Rockhopper, Argos will not have to uphold any additional commitments in exchange for the extension.
Ian Thomas, the CEO of Argos, expressed satisfaction with this development. “We are very pleased that the Falkland Islands govern- ment has awarded a licence extension,” he said. “This reflects the collaborative approach we seek to maintain with the government. While the extension is welcome, it remains our intention to secure partners and commence exploration drilling as soon as possible.”
According to previous reports, Argos hopes to find a partner for the project but has not named any potential participants. ™
Falklands offshore zone (Image: Argos Resources)
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w w w . N E W S B A S E . c o m Week 44 07•November•2019