Franco Pre-Salt – New Monster Play in Brazil
The Franco pre-salt field, which is located southwest of the massive Libra field that will be auctioned in October 21st, originally had been forecast to contain 3 billion barrels boe of recoverable light oil. In light of new studies, the Franco pre-salt field is now believed to contain recoverable oil volumes equal to or superior to the Libra pre-salt field, something hovering around 10 billion barrels boe. This is excellent news for Petrobras, which is in the process of making major exploratory, production and infrastructure investments and desperately needs new capital. The reason it being excellent news has nothing to do with oil auction…
Remora’s HiLoad DP for the Pre-salt
Remora is a Norwegian company, focused on providing solutions for offshore O&G loading. The company was established 2002 and has its head office in Stavanger, Norway and an office in Houston. Remora does business using a ship-owner structure by building, owning, leasing and operating HiLoad units. The range of HiLoad applications spans from offshore loading of crude oil, turret mooring of FSOs and FPSOs, as well as a mobile propulsion or DP system for seagoing vessels such as barges and floating rigs. The HiLoad concept is an innovative offloading solution which utilizes a ballasting system combined with a large square area of friction rubber which enables the HiLoad units to replace the water pressure on the tanker hull with no mechanical connection…
Portuguese Investment in Brazil’s Pre-Salt
Galp Energy, which is Portugal’s major O&G operator, is aiming at increasing its investments in Brazil through acquisition of new block during Petrobras’ pre-salt bidding round next October. Galp is already considered a preferred partner by Petrobras as can be seen by the fact that Galp currently partners Petrobras in four deepwater pre-salt blocks in the Santos Basin, with the biggest blocks being Lula and Cerambi, both large pre-salt plays, which are producing. Earlier this year Galp again partnered Petrobras in acquiring nine blocks in the Parnaíba, Potiguar and Barreirinhas Basin, during the 11th bidding round which mainly encompassed block along Brazil’s Northeast Coast and Equatorial Margin.
R/V Meteor – German Research Ship off Brazil
The R/V Meteor research ship arrived in Fortaleza, Ceara, on Brazil’s Equatorial Margin last Friday, June 28th. The Meteor which has a complement of 30 scientists of different nationalities, including one Brazilian, left port on Monday as it begins another Atlantic crossing to Namibia in West Africa, where it is due to arrive on July 29th. Along the voyage the ship will be collecting samples and data from deep waters, to be analyzed by a multidisciplinary team of researchers, composed of chemists, biologists and physicists. The only Brazilian aboard is Marcio Pereira, a 63 year old professor of Oceanographic Physics from the Geophysics department of the Federal University of Rio Grande do Norte (UFRN), whose studies will be concentrated in variations of marine currents.
Efficient Drill Bits for the Pre-salt
The expression "pre-salt" refers to an aggregation of rocks located offshore along large portions of the Brazilian and West African coasts, it forms a carbonate rock interval that ranges under an extensive layer of salt which, in certain areas of the Brazilian coast, can be as much as 2,000 meters thick. The total depth of these rocks formations, or the distance between the surface of the sea and the oil reservoirs under the salt layer, can be as much as 7,000 meters. Drilling in the pre-salt is extremely complex and may require multiple trips being made by the drill bit in order to drill short lengths due to different rock layers with varying degrees of hardness. Another challenge is that the salt is very corrosive and is also plastic, as you drill down, it tends to close the well walls.
Subsea Well Response Project to be launched in Brazil
With the continued increase in deepwater drilling off the coast of Brazil, it is good to see that Petrobras, Brazil’s national operator, will soon have a well containment device ready for immediate deployment in case of a deepwater blowout such as was experienced in the Deepwater Horizon tragedy at the GoM. According to a Petrobras drilling inspector who prefers to remain anonymous, the Brazilian super-major player believes that their well drilling and completion systems are totally reliable as long as their safety procedures are followed, however, they are taking no chances and have joined forces with other major operators to increase drilling, completion and production safety standards worldwide.
Environmental Risks of Drilling the Brazilian Equatorial Margin
With the 11th round of tendering for O&G block in Brazil set to start next week, it is important to look at some of the serious risks involved in drilling for O&G in Brazil’s Equatorial Margin. Most of the offshore blocks being tendered in this 11th round of bidding are located along Brazil’s northeast and north coasts. This, according to the Brazilian government, is being done in order to de-centralize O&G production in Brazil, where most of the oil and gas E&P is done along the southeast coast, basically centered off the states of São Paulo, Rio de Janeiro and Espirito Santo. This is all well and good, when considering the need to redistribute O&G wealth to other parts of the country…
New Subsea Center in Rio – Facing Challenges and Meeting Industry Demands
With the continuous increase of subsea equipment and services companies setting up in Rio de Janeiro, including local companies, The State Government, through its State Office for Local Development (Secretaria Estadual de Desenvolvimento Econômico), has decided to create a subsea center in order to stimulate the sector and bring investments to subsea technology suppliers eyeing the Petrobras orders. Today there are around 35 subsea companies located in Rio (8 offering equipment and 27 offering services). These companies have a workforce of almost 1,200 employees, and the idea behind the subsea center is to attract suppliers and investors for these companies.
Doubling Brazil’s Oil Production
ANP Brazil’s National Petroleum Agency is looking at doubling the country’s O&G production and also its proven reserves in the next 10 years. According to Magda Chambriard, ANP’s Director, that is the challenge faced by the local O&G industry. According to Magda, the O&G industry is already receiving 63% of the country’s investments, and Brazil will still need to invest US$400 billion in the next decade in the services area in order to meet the industry’s demands, while sticking to the local content regulations. Brazil has proven reserves to the tune of 15 billion barrels boe. “The demand on a minimum local content figure on projects in the service area for the O&G industry has created a niche of opportunities for Brazilian and foreign companies present in Brazil, that cannot be ignored.
Rio Oil&Gas 2012 – Great Outlook for New Business
A major opportunity for new business and new joint ventures was the prime result of the 2012 edition of the Rio O&G. Brazil’s National Petroleum Organization (Onip) believes the event may have been a catalyst for R$ 152,8 million (US$76,4 million) in new business for the next twelve months. A study made by Onip with companies present and the Rio O&G 2012 showed that 84% of these companies expected to undertake some for of new business opportunities in the near future. A total of 13 foreign and 17 local O&G companies negotiated to form joint ventures in the industry, of these 13 expect to close a deal on new joint ventures in the near future. These include local companies and companies from Canada, U.S, England, Argentina, Italy and France.
O&G Exploration to Increase in Brazil
Brazil has been investing in a major effort to increase its exploratory O&G campaign along the countries coast and also inland where major gas reservoirs have been recently located. Unfortunately, this is still not enough as presently Brazil is exploring only 4% of its areas with O&G potential. Of the 7,5 million square kilometers of sedimentary basins located in the country, only 7% have actually been researched, including all the recent major pre-salt discoveries. This points to major untapped O&G potential in the country, the numbers are impressive and point to a need to increase even more the research and exploration of the huge areas still untouched. This further increase in exploration brings various safety and environmental risks along with it.