Boom times for offshore Brazil

Brazil is implementing an ambitious plan for 2013–16, to improve the efficiency of its Campos basin fields and begin production from its massive pre-salt finds in the Santos basin. The domestic production target for oil, liquids and natural gas by 2016 is 3 MMboed. Over this time period, the exploration and production segment in Brazil will require an investment of $131.6 billion, of which 69% will be allocated for production development, 19% for exploration and 12% for infrastructure. Investment in the pre-salt cluster will account for 51% of total E&P investment.

PRAMOD KULKARNI, Editor

The FPSO Cidade de Paraty has been producing from the pre-salt Lula North field at the rate of 120 Mbopd since June 2013.

The realization of this E&P plan will require significant contributions from international operating company partners, service companies and equipment manufacturers. Among the challenges will be the construction of massive deepwater drilling and production facilities, FPSOs and related infrastructure. Brazil will also need R&D for the development of practical solutions for formation evaluation of the complex carbonate fields, drilling through salt, and producing oil and gas that is often intermingled with a corrosive CO2 gas stream.

The aggressive E&P approach is already helping Brazil increase production of both oil and gas. According to Petrobras, the state-owned operator, Brazil’s total oil production in June 2013 was nearly 2.5 MMboed, 4.8% higher than in May. This increase was the result of the start-up of new wells, as well as the return to operation of several platforms and FPSOs that underwent maintenance in May. In June, a new record was set, with average production of 310 Mbpd from pre-salt fields. Additionally, total gas production in June was 70.8 MMcmd, a 6.8% increase compared to the previous month.

The future looks bright for Brazil with the 11th and 12th Licensing Rounds and the first production sharing round bringing new operators to the country. These licensing rounds have opened up promising frontier areas, including the pre-salt Libra field. Petrobras will have its hands full, and will require the participation of international operators that have the fortitude to take on Brazil’s unique technological and regulatory challenges.