Exclusives

Brazil, oil, gas, energy, presalt, Fernando Coelho Filho

Energy Minister Fernando Coelho Filho sat with Hart Energy and other media during a roundtable at OTC to share thoughts on issues facing Brazil’s oil and gas industry.

Bolivia, gas, production, Petrobras, Brazil, contract

The existing contract, which has a take or pay clause, stipulates that Petrobras must import between 24 MMcm/d and 32 MMcm/d of gas from Bolivia.

Venezuela, oil, economic, crisis, Maduro, election, PDVSA

As Venezuela’s crisis goes deeper, government and opposition leaders refuse to talk about real changes in the country’s oil legal framework, a Venezuelan analyst says.

Brazil onshore presalt postsalt auctions Santos Campos basin

Of the 14 presalt fields to be auctioned during the next two years, 10 are located in the Santos Basin.

Forty British companies came to the South American country in order to reinforce networking and business expansion.

Deepwater International

Technip has clinched a major contract worth at least $559.2 million to supply a network of flexible pipes for the deepwater Lula Alto field offshore Brazil.

The issues related to Petrobras and the ongoing corruption probe in Brazil could lead to at least four major deepwater FPSO projects hitting at least a one-year delay, according to Portugal’s Galp Energia.

QGI Oil & Gas consortium has abandoned more than $1 billion worth of modules integration work on two identical FPSO vessels destined for one of Petrobras’ developments.

Petrobras has churned out announcement of yet another ultra-deepwater discovery but this time in the post-salt. 

Petrobras has highlighted the money it is saving through the utilisation of subsea equipment support vessels (SESVs) instead of drillships and rigs to install its subsea trees in the pre-salt offshore Brazil.

Exploration

Even while Ecopetrol booked a profit, production fell 3.3% in the first quarter. The decline was attributed to operational difficulties caused by National Liberation Army (ELN) attacks on the Cano Limon-Covenas Pipeline, Reuters reported.

The field produced between 10,000 barrels per day (Mbbl/d) and 12 Mbbl/d before it stopped output in 2016 when Petroperu closed its 1,106-km (687-mile) pipeline after the first of what would become a dozen oil spills in 2016, Reuters reported.

Anadarko, the operator, said the well hit 79 m to 110 m (260 ft to 360 ft) net of natural gas pay.

The data license covers deep and shallow-water areas in the basin near prolific geological trends, including the Cantarell and Ku-Maloob-Zaap reservoirs, the release said.

Argentina's state-run oil company YPF and Schlumberger have reached a deal to invest $390 million in the Vaca Muerta shale field in Patagonia, YPF said April 12.

Production

Efficiencies have pushed break-even prices to below $40 per barrel, a significant gain for Argentina, which has struggled to attract capital since crude prices started to decline in 2014.

The Cano Limon Field, operated by Occidental, produces around 50,000 barrels per day. The 780 km (485-mile) Cano-Limon Covenas pipeline can carry up to 210,000 barrels per day.

Both companies will take a 50% stake in the Bajada de Añelo Field to develop a pilot program, which will be operated by Shell, YPF said in a statement. The agreement is subject to approval by provincial authorities, and Shell’s investment will come in two phases, YPF said.

MODEC said this FPSO is the 11th it has delivered to Brazil's oil and natural gas sector, and the fifth it has delivered to the presalt region. 

Venezuela currently produces just over 2.4 MMbbl/d of crude and condensates, according to ministry data, Reuters reported.

Technology

Petrobras reported net income of 4.449 billion reais (US $1.42 billion), well above a consensus estimate of 3.773 billion reais, while improving cash flow and debt metrics. Petrobras lost a net 1.246 billion reais in the first quarter of 2016.

Four years after Total and its partners paid 622 million reais (US$196 million) for five exploration blocks, they are still waiting for the go-ahead from Brazil's environmental regulator, Ibama.

Saipem’s flagship vessels FDS2 and the Normand Maximus will carry out the work, which will begin in 2019.

YPF said it has placed 96 new wells on production in the first quarter of 2017, including 14 in Vaca Muerta, and that it finalized 11 exploratory wells, Reuters reported.

The field, oil lot 192 near the Ecuadorean border, has been idle since last year due to pipeline ruptures. Pacific Exploration & Production said a group of 30 indigenous people began the protest on April 22.