Exclusives

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.

President Energy, Paraguay, Boqueron, seismic, well, Pirity

The company said its Boqueron prospect in Paraguay’s Hernandarias Block could hold unrisked recoverable gas resources of an estimated 559 billion cubic feet plus 302 million barrels of oil and 17 MMbbl of condensate.

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

As part of the agreement, Hess will fully fund the cost of a 6,500 square kilometer 3-D seismic survey that is scheduled to begin in 2016’s third quarter. 

The survey, which was conduted by Polarcus, was comprised of about 785 sq km of data and targeted leads identified on 2-D legacy data. The data will now be processed and interpreted in-house, the release said.

Shell wants to keep investing in Brazil as the country has viable oil reserves despite recent market uncertainties, Shell Brazil CEO Andre Araujo said. 

Rosneft plans to raise its stake in the Petromonagas joint venture from 16.7% to 40%.

The three new fields—Boicobo, Ipaguazu and Boyuy—in the Caipipendi block in southern Bolivia contain enough gas to meet the demands of neighboring Brazil over 10 years, said Diego Diaz, the head of Repsol's Bolivian unit.

Production

IPD's prediction comes on the heels of its quarterly sector survey, which estimated Venezuela's oil output tumbled 6.8% to 2.59 MMbbl/d in the first quarter compared with the same period of 2015.

Oil production has begun from the third phase of the deepwater Parque das Conchas (BC-10) development in Brazil’s Campos Basin, Shell said in a news release.

In an interview published on March 6, Chief Executive Miguel Galuccio said that profit on YPF's shale oil and gas production was "marginal" even with the price of locally produced crude set artificially high by the government.

Petrobras said the drop was principally due to scheduled maintenance on several platforms, Reuters reported.

There is a wellhead platform in 50 m of water, tied back to the Total-operated Rio Cullen and Cañadon Alfa onshore treatment facilities by a 77-km offshore pipeline.

Technology

Under the production-sharing rules, Petrobras is the only company allowed to operate oil and gas E&P blocks in the Subsalt Polygon, Reuters said. 

Jose Icaza was named to the post following the resignation of former minister Carlos Pareja. The decree did not offer details as to why Pareja left the post.

In February, a source involved in talks between the state and oil industry executives told Reuters Rio de Janeiro planned to scrap the tax to help protect the local economy.

The contract covers maintenance, storage, supply of parts and technical assistance for all subsea equipment delivered by Aker Solutions to Petrobras in Brazil, Aker Solutions said in a news release.

The company said it remains "fully committed" to supporting the Venezuelan E&P industry. However, it is unable to increase its accounts receivable balances beyond their current level, Reuters said.