Pre-salt Production Start for P-58

by Claudio Paschoa 20. March 2014 20:43

Petrobras’s P-58 FPSO started operations at Parque das Baleias, off the state of Espírito Santo, on the north sector of the Campos Basin through well 7-BFR-7-ESS, another pre-salt producer, which is showing an excellent productivity. P-58 is part of the North project of Parque das Baleias, which encompasses production from Baleia Franca, Cachalote, Jubarte, Baleia Azul and Baleia Anã plays.

P-58 is moored approximately 85 km off Espírito Santo, at a water depth of 1,400 meters. In the upcoming months, 15 production other wells, being 8 pre-salt and 7 post-salt, as well as 9 injection wells will be interconnected to it through 250 km of flexible pipelines and two subsea manifolds. The P-58 FPSO  has a daily processing capacity of 180 thousand barrels of oil and 6 million cubic meters of natural gas. Shuttle tankers will be responsible for exporting oil from the FPSO and a gas pipeline will transport natural gas to the Cacimbas Gas Treatment Unit in the municipality of Linhares, also in Espírito Santo.

The construction work created some 4,500 direct jobs, 13,500 indirect jobs and reached a local content of 64%. The construction of the FPSO’s oil processing and gas compression modules took place in Rio de Janeiro. Once finished, these modules were then sent to Rio Grande shipyard, in south Brazil, where the construction of the electrical panels and main power generating modules occurred and along with the integration of all modules on to the FPSO's deck.

The start-up of P-58 is in accordance to Petrobras’ 2014-2018 Business and Management Plan, which also calls for 3 new platforms will start-up operation in Q2 of 2014. At the Roncador play, in the Campos Basin, P-62 FPSO will develop the field along with platforms P-52, P-54 and P-55. P-55 started production in December 2013. At the Papa Terra play, a platform P-61 TWLP and a drilling support vessel SS-88 TAD (Tender Assisted Drilling) will come into operation. These units will develop the production of Papa-Terra together with platform P-63, which started-up production in November, 2013. This batch of new pre-salt and post-salt plays coming into the production stage will help in increasing Brazil's oil production, while at the same time highlighting the need for optimization and implementation of a comprehensive emergency response plan and securing the availability of emergency response assets.

P-58 specs:

Oil processing capacity: 180,000 barrels/day;

Gas treatment and compression capacity: 6 million m3/day;

Local content: 64%;

Water treatment injection capacity: 58,000 m³/day;

Power generation capacity: 100 MW;

Water depth: 1,400 m;

Living quarters: 110 people;

Total weight of the platform: 63,300 tonnes.

Major Effort to Increase Campos Basin Output

by Claudio Paschoa 10. August 2012 05:22
Petrobras has set plans to spend $5.6 billion through 2016 to increase output at the Campos Basin mature fields which have had decreased outputs for some time. Most post salt fields at the Campos Basin have been in production since the 1980s, some of which have been major producers. A steep decline in production began around 2009, not only due to the aging fields having low reserves but also because of lack of investments in operational resources and equipment for the older fields. The national operator will invest $1 billion in new money and spend $4.6 billion in operating costs to boost efficiency in the offshore Campos Basin operating unit to historic levels of about 90%, up from 72% in the first quarter of 2012. The program will update old equipment and use new technologies in order to improve recovery from the old wells. Another important aspect of this effort will be in substituting aging rigs and production systems with more modern equipment, something that has been demanded by the local offshore workers unions for some time and which has already lead to countless strikes and even some serious accidents. "We are going to return to levels of efficiency more adequate for a mature basin," said Joelson Falcao, general manager for Petrobras's Campos Basin operating unit. The Campos Basin includes 31 offshore platforms, or production systems, operating off the coast of Rio de Janeiro and São Paulo, including several of Brazil´s oldest offshore rigs. Some of the technologies used to increase this output may be related to re-injection of water or CO² in order to boost the output, other possibilities include the use of subsea systems instead of some traditional surface production systems in some wells. Subsea separation technology may also be in the cards in order to maximize recovery. The Campos Basin is responsible for about 1/4 of the Petrobras's nearly 2 million barrels of daily crude production.

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Brazilian Pre-salt Discoveries Raise Expectations for New Discoveries in WA

by Claudio Paschoa 14. June 2012 22:27

Statoil recently increased the estimates for their Campos Basin pre-salt O&G discoveries up to a substantial total of 1.24 billion barrels boe. Consequently Statoil has also increased its optimism for the geologically similar plays it has in Angola. Not only are the cross ocean plays geologically similar but they are also located along the same longitude.

Both pre-salt geological formations off the Brazilian and West African coasts have their origins in common, something that goes back around 120 million years ago, when ancient Gondwana split into what is now known as South America and Africa. The pre-salt reservoirs on both sides of the Atlantic Ocean are expected to contain large quantities of light oil.

Looking the other way, new pre-salt discoveries in Ghana and the Ivory Coast may indicate that prospective pre-salt reservoirs in the Brazilian northeast and north, which line up nicely with Gabon, Nigeria and the two other countries mentioned above.

What we have is a definite possibility the major new oil discoveries can be expected to continue to be discovered in both sides of the Atlantic in the coming years and these will most probably have a substantial effect on the not only global O&G reserves but also on the deepwater O&G market and all of its equipment and service suppliers.

A continuous increase in demand for deepwater equipment can be considered a certainty and more specialized companies will definitely be heading to both sides of the ocean in order to compete for major contracts.

This will also have a strong positive impact on the drillship and FPSO markets, along with an increase on demand for PSVs and other supply vessels.

What may eventually become a problem is the need for increased safety measures both in drilling and production on both sides of the Atlantic as the risks involved must be considered major.

Claudio Paschoa

 

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O & G Exploration

Frade Spill a Wakeup Call for Deepwater O&G Exploration off Brazil

by Claudio Paschoa 17. November 2011 16:05
The seabed oil spill that is still ongoing next to the Frade oil field in the Campos Basin is again raising the local awareness to the inherent dangers associated with O&G exploration. As many politicians and environmentalists hit the panic button, this kind of spill is, if not expected, is a definite possibility. There is simply no failsafe way to drill for oil and when the actual drilling is done underwater the risks compounded and the time it takes to resolve the issue is also increased. As this particular spill is a deep water event 1,200 meters deep it may not be so easy to stop and Chevron, the well operator has already taken steps to shut down the well permanently, this may also point to a loss of well control and a possible blowout. Chevron already admitted that something went wrong at the well it was drilling which is located 130 km from the coastal city of Macaé, which is the gateway to the Campos Basin oil fields. Chevron also reported that the well is leaking around 330 barrels/day, however according to Skythruth, which specializes in interpreting satellite imagery, the spill may reach a volume of 3,738 barrels a day, therefore it may actually be 10 times bigger that acknowledged. It is important to remember that something similar happened at the Deep Horizon spill at the GOM where the first information releases were also conservative, and when the truth finally came out the spill was actually 12 times bigger that the first estimates released by BP. It is also relevant to note that the drilling rig in this case here in Brazil is also owned and operated by Transocean, which was also a culprit at the GOM disaster, although this is most probably a coincidence as Transocean is well regarded as a premier drilling operator. As luck has it the spill is being pushed further offshore by the currents, but had it been the other way around it would be an environmental calamity as the shores nearest to the well are dotted by delicate natural environments within nature preserves and famous tourist areas such as Búzios. This accident will hardly slow down, much less stop O&G exploration in Brazil, but it is being considered a definite wakeup call by the local industry and government to better prepare themselves for future deep water spills. Looking at the intense volume of drilling being undertaken off the Brazilian coast, this is bound to happen sooner or later and we may not be so lucky with the currents next time. Claudio Paschoa

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Oil Spill Response Technology

Habitats Project - Campos Basin Environmental Studies

by Claudio Paschoa 5. August 2011 16:06

Since 2007, Petrobras, along with national research institutes and industry suppliers, has been busy researching physical, chemical, geological, biological and socio-economic characteristics of the Campos Basin, a region that starts at the north end of the State of Rio de Janeiro all the way to the south of the State of Espirito Santo, encompassing an area of some 100 thousand square kilometers.

The project has two main parts, one about fisheries and its socio-economic impact and the other about environmental issues, which is called the Habitat Project. The information is being transformed into a database, which will be used to support decision making concerning environmental issues, environmental management and will also be edited as a scientific publication.

The Campos Basin Regional Environmental Characterization Project came from a demand by the Brazilian Environmental Institute (Ibama) and the database and publications are scheduled to be available to all interested parties by 2012.

It is a little strange that a project like this has not been undertaken sooner since the Campos Basin has seen O&G exploration since the 80´s and it is hoped that the same program will be swiftly extended to the Santos and Espirito Santo Bacins. Important discoveries related to deepwater fishes have already been made and the project is truly leading to a better understanding of the different environments that make up the Campos Basin.

All together 250 researchers, technicians, professors and students are involved in the project, which along with contributing to the quality of information on the Campos Basin environment, also helps in making data easier to find for technical projects for both Ibama and Petrobras, scientific institutions and other government or non-government organizations.

All the data was collected between the coast and the seabed up to 3,000 meters, making it possible to have a very thorough characterization of the Campos Basin.

 

Claudio Paschoa

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Environment

OGX – Intensifying Discovery Appraisals and Planning on ordering 3 more FPSOs

by Claudio Paschoa 11. May 2011 17:46

Paulo Mendonça, CEO of OGX stated that the first quarter of 2011 was very important for the Brazilian operator. OGX has been intensifying the campaign to appraise its discoveries in the Campos basin, where 16 wells have been spud since the beginning of the year, of which 10 are appraisal wells for the accumulations Waikiki, Pipeline and Illimani (Campos Basin) and Fazenda São José (Parnaíba Basin), with the intent of converting 3C contingent resources into 2C and 1C, and thereafter into reserves.

OGX has ambitious plans for the coming months including:

-Production start-up to begin during the third quarter of 2011 through an ongoing EWT at  its Waimea play;

-Increasing the rhythm of its appraisal campaign, specifically in the Campos basin;

-Starting off the exploratory campaign in the Pará-Maranhão and Espírito Santo basins along the year;

-Delivering the vital and time sensitive declaration of commerciality to ANP (National O&G regulator), related to the discoveries in Campos, Santos and Parnaíba Basins.

On a more extended plane, they also intend to order 3 more FPSOs by 2015, at this point OGX has ordered 5 FPSOs, which will be ordered from OSX its sister company specialized in shipbuilding and ship leasing. Both OGX and OSX are part of the EBX group belonging to Brazilian mega entrepreneur Eike Batista, currently the 8 richest man in the world, according to Forbes magazine.

The first FPSO, OSX 1 is part of a deal with BW Offshore, which is managing its convertion in Singapore, since the OSX shipyard, in partnership with HHI (Hyundai Heavy Industries) is  still being built in north Rio de Janeiro. OGX will pay $263 thousand a day to its sister company for the use of the FPSO, a figure which is definitely below the market average for FPSO lease.

The OGX shallow water discoveries off the coast of Rio de Janeiro are very impressive as is its discovery success in the Campos Basin, which is near 100%. Another important aspect of their discovery campaign is the fact that OGX has uncorked a new shallow oil province in the south Campos Basin. We are looking at an impressive net potential of resources for OGX in the Campos Basin of 5.7 billion boe, of which a considerable amount will come from this new oil province.

 

Claudio Paschoa

Above: Paulo Mendonça - CEO of OGX, who was a top Petrobras geologist and executive for over 30 years, before joining the new Brazilian player.

 

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O & G Exploration

The Toucan and the Dragon

by Claudio Paschoa 18. April 2011 19:19

It took a while to happen, but Petrobras and Chinese oil and petrochemical companies finally reached partnership agreements. Considering the scope of the Brazilian pre-salt and the expected growth of the Brazilian O&G market, these partnerships may become vital, as much more investments will be needed along the next 10 years.

These partnerships in research and O&G exploration and production have been in negotiations for a long time but it took an official Brazilian delegation, headed by Brazilian President Dilma Rouseff, going to China, in order make it happen. It was a certainty in the market that this partnership would eventually come to be, it was just a matter of when it would happen and what it would encompass.

With Sinopec, Petrobras struck a Technological Cooperation Agreement (TCA), in order to exchange knowledge in areas such as geophysics, geology, and reservoir engineering.

Petrobras also signed a Memorandum of Understanding (MOU) with Sinochem, China´s leading pretochemical conglomerate, aiming at strategic cooperation in order to identify and make business opportunities viable in E&P areas, oil and gas commerce and mature field recuperation.

Petrobras and Sinopec have manifested their desire to look for mutually beneficial business opportunities in various areas, including subsea technology and deepwater subsea systems manufacture, therefore increasing the commercial relations already in gear between the two companies.

China has been making significant investments in subsea technology and the development of the Brazilian and West African deepwater pre-salt is considered of strategic importance by the Chinese government. Sinochem is already uncorking new oil in Brazil, through its partnership with Statoil.

This is happening at the Statoil operated Peregrino field in the Campos Basin, where Sinochem holds a 40% stake. The field is located 85km off the coast of Rio de Janeiro at a depth of 120 meters.

A new exploration well was just drilled at the Peregrino South reservoir, just a few kilometers from the already producing, main Peregrino field. This new sandstone oil accumulation was found within the famous Carapebus geological formation, which also contains other important Campos Basin reservoirs. It is still too early to define the size of the new discovery, as Statoil is still to drill an additional appraisal well in Peregrino South.

The importance of new discoveries in the Campos Basin must be emphasized, for a long time this Basin was thought to be mostly over-explored and only contain mature fields. These new Statoil discoveries, along with the discovery of a new O&G province in the South Campos Basin by OGX, and other new discoveries, basically eliminates any notion that the Campos Basin has little left to give. Last year Petrobras even discovered new pre-salt reservoirs under existing post-salt wells in the Campos Basin, which was something very few would have expected.

 

Claudio Paschoa

Above: Petrobras CEO José Sergio Gabrielli de Azevedo, and Sinopec CEO Fu Chengyu signed a Technology Cooperation Agreement at company's headquers in Beijing

 

 

Above: Petrobras E&P Director, Guilherme Estrella, during the Memorandum of Understanding signing cerimony for the Strategic Cooperation with Sinochem in Beijing, China

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O&G Market

New O&G Province in South Campos Basin a Reality

by Claudio Paschoa 28. February 2011 17:39

Tests on a number of recently discovered adjacent wells, along with the first production well at Waimea Horizontal, support OXS´s claim that a new shallow water O&G province has been discovered at Block BM-C-41 in the southern Campos Basin.

It is very significant when an acclaimed Geologist such as Paulo Mendonça, General Manager (Director) of OGX, comments that “This is one of the best production tests I have ever seen in my life”. Mr. Mendonça worked for decades in Petrobras and actively participated in ALL the major hydrocarbon reservoir discoveries made by Petrobras in Brazil, including the early Campos Basin boom, along with spearheading discoveries at the Espirito Santo and Santos Basins. That´s just to name the most known Basins he helped discover and develop, because there are quite a few more Basins involved.

There is no real need at this point to go into final recoverable oil figures, as that would be hard to ascertain at this point but if the total potential is anywhere along the 3.6 bboe, originally predicted, they that would be awesome. It may swing for more or less than that in the end, but it´s still a major achievement. Shallow water drilling is way cheaper than deep water drilling to begin with and the plays are basically all within a hundred km from the coast, which simplifies logistic tremendously. In term of safety, shallow water drilling normally is less complex and demanding than deep water efforts but there definitely are risks, as there always will be when drilling for oil. At least shallow water drilling is something more easily understood after so many years of E&P.

The good side is that OGX is a new O&G player with different values than the old players and also a supposedly, very safety and environmentally conscious operation.  Then again, all O&G players claim to be very safety and environmentally conscious operations. In the end only time will tell.

Tests on a number of recently discovered adjacent wells, along with the first production well at Waimea Horizontal, support OXS´s claim that a new shallow water O&G province has been discovered at Block BM-C-41 in the southern Campos Basin.

It is very significant when an acclaimed Geologist such as Paulo Mendonça, General Manager (Director) of OGX, comments that “This is one of the best production tests I have ever seen in my life”. Mr. Mendonça worked for decades in Petrobras and actively participated in ALL the major hydrocarbon reservoir discoveries made by Petrobras in Brazil, including the early Campos Basin boom, along with spearheading discoveries at the Espirito Santo and Santos Basins. That´s just to name the most known Basins in Brazil that he helped uncork and develop, because there are quite a few more Basins involved.

There is no real need at this point to go into final recoverable oil figures, as that would be hard to ascertain at this point but if the total potential is anywhere along the 3.6 bboe, originally predicted, they that would be awesome. It may swing for more or less than that in the end, but it´s still a major achievement. Shallow water drilling is way cheaper than deep water drilling to begin with and the plays are basically all within a hundred km from the coast, which simplifies logistic tremendously. In term of safety, shallow water drilling normally is less complex and demanding than deep water efforts but there definitely are risks, as there always will be when drilling for oil. At least shallow water drilling is something more easily understood after so many years of E&P.

The good side is that OGX is a new O&G player with different values than the old players and also a supposedly, very safety and environmentally conscious operation.  Then again, all O&G players claim to be very safety and environmentally conscious operations. In the end only time will tell.

  

Claudio Paschoa

 

 

Part of the OGX Release concerning Waimea and the New O&G Province:

OGX concluded the drilling of the horizontal well 9-OGX-26HP-RJS (Waimea Horizontal) and, through a drill-stem test (DST), has identified excellent production index (PI) of 100m³/day/kgf/cm², similar to results obtained in the best wells in the country. Currently, the well is being equipped to perform an extended well test (EWT) which is expected to register oil flowrate of up to 20,000 barrels per day, and a higher flow rate during its definitive development phase. This result surpassed initial expectations related to the Waimea accumulation and provides a solid foundation for the initiation of OGX’s production phase. This well is located in the BM-C-41 block in the Campos basin and will be connected to the FPSO (Floating Production Storage & Offloading) OSX-1 during the EWT, which will begin in the middle of 2011.

“The result obtained in the drilling of this well represents a milestone in the Company’s history. The use of horizontal drilling technology in the well confirmed very high production indexes in the carbonate reservoirs in the southern Campos basin, proving that we do have, in fact, before us an extraordinary petrolific province,” commented Paulo Mendonça, General Director of OGX. “This is one of the best production tests I have ever seen in my life”, added Mr. Mendonça.

The drilling of the horizontal well 9-OGX-26HP-RJS utilized state-of-the-art technology. OGX’s technical team was responsible for implementing an approach which called for the drilling of a directional well to a depth of 3,746 meters in order to enable a horizontal entrance into the targeted reservoir. The successful execution of this approach resulted in a well with more than 1,000 meters of horizontal extension in the carbonate reservoirs of the Albian section of the Waimea accumulation, which was originally discovered through the drilling of the 1-OGX-3-RJS well on December 18, 2009.
Following the conclusion of the drilling process, a drill-stem test was performed, which confirmed production potential of 40,000 barrels per day of oil with gravity of approximately 20°API. A complex process of selective acidification was used in eight well intervals, permitting better stimulation of the more than 1,000 meters of the well’s extension, thereby maximizing the oil flow.
In addition to the results, further information was collected, such as features of the reservoir rock and of the fluids, which will be analyzed by OGX’s technical team in the coming months. These interpretations, along with the information from the EWT will permit a better understanding of the accumulation and will assist in the preparation of the development plan.

 

 

 

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O & G Exploration

Flaming Rig – No Worries

by Claudio Paschoa 29. January 2011 19:46

As fires blazed on an old Petrobras production rig at the Campos Basin on the 19of January, silence was the rule, as has always been the rule with such trivial emergencies such as a large fire on an oil rig. 

I must be thick or something, but I consider it strange that a major fire on an oil rig only comes to public notice nearly ten days after it happened. Actually I shouldn´t complain because normally these small accidents would never have become known. Hey, no one even died, right, that a failure on an oil transfer pump caused a massive blaze, including a full on electric fire, which took Petrobras´s onsite fire brigades all of half an hour to control, is no big deal! Now imagine that this kind of attitude has been going on for decades.

Since no deaths occurred and no spills were caused there is no need for this to become public. Wrong, that kind of attitude will have to change.  It´s easy to say you have a transparent operation, it´s a whole lot harder to actually be transparent. In this day and age it´s foolish to think you can keep things under wraps, it´s better to be honest.

A fire that is so intense that it takes firefighters so much time to control is no minor accident. Trust me, a fire blazing for half an hour on ANY oil rig ANYWHERE is a big deal and a very scary prospect for the 160 souls there at the time.

The production on the Cherne II rig at the Campos Basin has been halted since the 19. The flames reached the safety valves on the oil separators, forcing the halting of production even after the blaze was extinguished. Although the Campos Basin emergency plan was activated and rescue-firefighting vessels were stationed around the rig, the onboard firefighters managed to control the blaze by themselves. The fire destroyed electric and instrumentation cables on the rig, which was installed in 1983, about 120km from the coast of Macaé.  Although there were no casualties and it was deemed unnecessary to abandon the rig. Some safety inspectors believe that the correct procedure would actually have been to remove unessential personnel from the rig while the fire was being fought.  The accident was only communicated to the Brazilian Navy and port authorities the following day, something which some believe should have been done immediately.

This recent accident only highlights the risks being taken on these old production rigs and the need to increase inspections and provide more maintenance rigs to accelerate maintenance on the old production rigs. It also indicated that there may be procedural flaws that need to be addressed when dealing with major rig accidents. All in all, Petrobras appears to be doing a good job in keeping the production rigs safe, but oversight is still needed as it is all too easy to downplay risks when struggling to maintain production. ANP, vigilant as ever will look into the accident, however I find it strange that they only plan to inspect it, in JUNE, even after this recent fire. Go figure.

With the massive growth Brazil faces in terms of drilling, production start-ups in shallow and deepwater, and what not, it´s easy enough to forget these old production rigs that have been our bread and butter for so long. Lest we forget.

 

Claudio Paschoa

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Environment

OGX Keeps Up its Drilling Effort in 2011

by Claudio Paschoa 18. January 2011 15:19

After a nearly perfect drilling campaign on various fronts in 2010, OGX start 2011 with new discoveries in the Campos Basin.

Although there was much skepticism at the start of OGX´s creation in 2007, after last year´s performance, the new Brazilian operator, which was created by Brazilian businessman and investor Eike Batista adding to the portfolio of his EBX Group can now easily be considered as a good investment, especially for those who bought in early.

Eike´s strategy to hire and partner with Petrobras´s extraordinary geologist and executive Paulo Mendonça was vital not only to gain market value as to bring in deep knowledge of where do drill and how to plan the E&P campaign.   It´s important to not that Petrobras´s exploratory success rate more than doubled after Mr. Mendonça took over the national operator´s exploration team.

Since its creation OGX has secured over 9 billion boe and 50 fields discovered (onshore and offshore). This year it has already discovered gas in a section of well 1-OGX-25-RJS in block BM-C-39 in the Campos Basin and oil in 1-MRK-3 4P also in the Campos Basin where it holds a share with Maersk as the main operator, however they did have one setback in the Santos Basin where the OGX-23 well had negative results for commercial oil. According to ANP, OGX is the biggest private investor in O&G exploration in Brazil, surpassing strong foreign competition.

The potential shown by OGX´s onshore blocks in the Parnaiba Basin (mostly gas) and the Para-Maranhão Basin (with a geological model similar to Ghana in WA) are also noteworthy along with the blocks it also owns in the Espirito Santo Basin which have already surpassed discovery volume forecasts.

This year it will be interesting to see how OGX´s drilling program unfolds and also how many of these recent discoveries it will be able to get online. The player is now dependant on getting the necessary assets such as FPSO´s and production rigs in place and pumping in order to quickly see more profits coming in. It´s also important to note that the drilling campaign will still be going on and that at this point they´ve basically uncovered a new O&G province in the south Campos Basin.

Claudio Paschoa

 

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O & G Exploration

 
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