Fossil Energy – Brazil
Equinor and ExxonMobil Corp have taken the first steps to expand an $8 billion oil development off Brazil’s coast, the Norwegian oil producer told Reuters.
The firms want to boost future production from the Bacalhau oil field, Equinor’s largest project outside of Norway with more than 1 billion barrels of oil, the company said.
A second drilling rig and a second floating production platform are being considered for the next phase along with a more than 100-mile-long gas pipeline, three people close to the discussions said.
The partners are assessing awarding a contract for a second drilling rig. Pre-drilling of phase 1 wells should start in the third quarter this year, a spokesperson said. Equinor did not comment on plans for a new FPSO or pipeline.
The second phase could potentially double the project investment if the new exploration works are successful.
One of the issues to be decided is whether the field will produce enough oil to justify a second floating platform, or FPSO, and a gas pipeline to bring the field’s natural gas to shore.
Equinor and Exxon could use a subsea tieback if the findings do not justify a second platform, two of the people said. Wells would be connected to the first FPSO, which would reinject the gas into the reservoir.
The first FPSO is being built by Japan’s Modec and was designed to keep greenhouse gas emissions intensity 65% below Exxon’s average, according to a company presentation.