Statoil, Peregrino, Phase II, Project, Brazil, Platform Statoil ASA (NYSE: STO), together with its partner Sinochem, has submitted the plan of development (PoD) for the Peregrino Phase II project offshore Brazil to the National Agency of Petroleum, Natural Gas and Biofuels (ANP) in Rio de Janeiro on Jan. 30, the company said in a Feb. 27 release.

The submission follows the sanction of the Peregrino Phase II project in December, the release said.

The project entails a new wellhead platform and drilling rig (Platform C) and adds about 250 million barrels (MMbbl) in recoverable resources to Peregrino field. The project entails investments of about $3.5 billion.

The submission of the PoD to the Brazilian authorities is an important milestone. The Peregrino Phase II will enable the extension of the economic life of the Peregrino Field in Campos Basin, offshore Brazil.

Brazil is a core area for Statoil and Phase II is an important and strategic element in Statoil’s ambition to continue to build a strong position in the country. The Peregrino Field has a good track record, with more than 90 MMbbl produced since first oil, in April 2011.

Based on the current plan, Peregrino Phase II is expected to start production towards the end of the decade, but Statoil will make adjustments to the schedule should that be necessary. The project team will look into further savings through simplification, standardization and a tailor made execution strategy thus improving return over investment.

Project Concept

The current solution consists of a wellhead platform with a drilling unit (WHP-C) tied-back to the existing FPSO Peregrino. The facilities contains standalone power generation and will export power to WHP-A.

Phase II will enhance production from the Peregrino Field by increasing the number of production wells from a new area (Peregrino Southwest), which today is not reachable by the existent platforms A and B. A total of 21 wells—15 oil producers and six water injectors—are planned to be drilled as part of the Phase II development.

All the production and injection wells in the Phase II development are planned to be drilled from one new drilling center, WHP-C installed in 120 m (394 ft) water depth.

With platform C, the company will increase well potential and be able to continue producing in Peregrino Field for a longer period of time.

The expected recoverable resources from the Phase II development within the concession period (until end of 2040) are 250 MMbbl.