From Houston (BN): At least six workers have died in an explosion aboard the BW Offshore-operated FPSO Cidade de Sao Mateus, 80km offshore of Vitoria in Espirto Santo state.

The ensuing fire was quickly controlled, the vessel stabilized and production safely shut down. There was no spill. Efforts continued to find three personnel still missing as of yesterday (Wednesday). Search and rescue efforts were hampered by persistent accumulations of gas on board.

Gas leak alarms sounded in the pump room prior to the blast, but the cause awaits further investigation. Reports indicated 26 personnel were hurt, seven seriously enough to be hospitalised. Five remained in hospital at midday Wednesday.

Petrobras said the unit had been in operation since 2009 producing post-salt Camarupim (Petrobras 100%) and Camarumpim Norte (Petrobras 75%, Eouro Preto Energia 25%) reservoirs in the Espirito Santo Basin.

Production at the time of the accident was about 2.2mcm/d and 2,000b/d, well below the FPSO’s capacity. The ANP board earlier this month had asked operators by January 2016 to ‘introduce studies for the reduction of idle capacity’ at the fpso, including possible connection of wells in the Golfinho field to boost throughput. Sources said it is unlikely that the request contributed to the accident.

Also from Brazil, Petrobras reported a slight drop in January domestic oil and gas production, to 2.661mboe/d compared with 2.675mboe/d in December with a contribution of 669,000b/d from the pre-salt.

Petrobras attributed the slight drop in January production to shutdown of FPSO Marlim Sul in the Campos Basin and completion of an extended well test in Berbigao field in the Santos Basin by the FPSO Dynamic Producer.

On the plus side, new wells were started up on FPSO Mangaratiba in Lula field and on platforms P-52 and P-62 in Roncador.

There was also the successful completion of drilling and tests of an extension well in the northwest portion of the Libra (SEN, 31/21) block in the Santos Basin pre-salt.

The well, 4km southeast of the discovery well, 300km southeast of Rio de Janeiro, confirmed a net 290m column of high quality reservoirs. The Libra consortium includes Petrobras (operator, 40%), Total (20), Shell (20), CNPC (10), CNOOC (10). The state-owned pre-salt oil company, PPSA, also is involved.

Finally the Petrobras board named a new boss, Aldemir Bendine, former CEO of the Bando do Brasil to replace Maria das Gracas Silva Foster, who resigned (SEN, 31/22) in the wake of the bribery and kickback scandal that has plagued the company for months.

The board also appointed a new CFO and investor relations officer and four new interim executive directors to head the upstream, downstream subsea engineering, and gas and power divisions.

From the editor: The troubles at Petrobras are spilling over, as one would expect, into the supply sector.

Seadrill has had to write out over $1bn in backlog as a result of a delay in the signing of two deepwater rig extensions. The good news for the drilling contractor is that contracts for two deepwater drillships which will operate at Libra have been signed with work there due to begin in the next few months.