Exclusives

Rafael Cruz, Petrobras, Lula, field, oil

Production from the field is pushing Petrobas closer to its 1-MMbbl/d presalt goal

Brazil, opportunity, Mayer Brown, Operation Car Wash, assets, oil, production, Petrobras, offshore, divest

The corruption scandal hits debt-laden Petrobras hard during one of the worst downturns in the oil and gas sector’s history. But it’s not all bad news for potential investors.

A novel scale inhibitor formulation optimizes artificial lift in mature, calcium-rich wells in an Argentine field.

Like in many shale plays around the world, players interested in the Vaca Muerta Formation must overcome steep learning curves and find adequate financing. But the prize is there. 

Cow, McClendon, JV, American Energy Partners, Argentina, Vaca Muerta, shale, YPF, farm in, Jessica Garrison, Stratas

The Oklahoma City company and Argentina's state-run firm plan to invest more than US$500 million in developing the Vaca Muerta Shale over the next three years.

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

Additionally, the aging wells come with large future costs for safe closure under environmental and other laws, Reuters reported.

In an eight-year period, Pacific Exploration drilled more than 1,000 wells and invested more than US$5 billion in E&P at the Rubiales Field. 

Ecopetrol has been selling assets in a bid to fund its investment plan, which is down by $1.8 billion this year, Reuters reported. 

Petrobras said a new well has discovered the largest net pay to date in the Libra block, with 410 m of thickness, surpassing the previous largest column of 301 m announced in March.

ENAP, Chile's main oil refiner and a domestic market fuel provider, produces little crude oil but has invested heavily in gas exploration in the southern part of the country, Reuters said. 

Production

South Atlantic Holding, which is owned by Statoil and Sinochem, has selected  Wood Group to provide detailed engineering and design, and procurement services for development of the Peregrino Field wellhead platform C offshore Brazil, a news release said.

In Colombia, GeoPark plans to drill about six wells, including one or two exploration wells, in the Llanos 34 Block during 2016.

Chevron initiated arbitration proceeding at The Hague in 2006, claiming Ecuador's courts failed to resolve lawsuits in a timely manner, violating a treaty between Ecuador and the U.S., Reuters reported.

GeoPark is also accused of having faulty systems in place for avoiding soil erosion and managing spills of hazardous materials, and of damaging archaeological findings, Reuters reported.

Colombia will need about $7 billion in annual investment over the next 10 years to bolster oil exploration and avoid a drastic drop in output that would lead the Andean nation to import crude by 2022, the head of the oil industry's union said on June 1.

Technology

The bill would modify a 2010 law requiring all new development in the Subsalt Polygon be led by Petrobras, and that Petrobras take a minimum 30% financial stake in all subsalt projects, Reuters said.

In March, an indigenous village in the Amazon area briefly held several public officials hostage to press for help after a ruptured pipeline leaked 1,000 barrels (Mbbl) of crude, Reuters reported.

Venezuela is struggling under a severe economic contraction resulting from a decaying socialist economic system, low oil revenue and power rationing due to a prolonged drought, Reuters said.

Argentina's center-right President Mauricio Macri calculates Vaca Muerta, which could contain the world's largest shale reserves, would need total long-term investment of $200 billion to reverse Argentina's sustained energy crisis.

YPF controls the Vaca Muerta Shale Formation, which could contain the world's largest shale reserves, Reuters said.