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.
The company, a partner with Petrobras in a significant number of offshore projects, said in its latest presentation that the building of the floating production vessels for the Lula Sul, Lula Norte, Lula Extremo Sul and Lula Oeste fields could all be hit by the one-year delay, according to CEO Manuel Ferreira De Oliveira at an investor presentation in London, England.
Galp stated in its presentation that it is ‘actively monitoring and implementing mitigation measures to reduce execution risk regarding the replicant units, with Galp Energia’s internal scenario already considering a one-year delay on average for each of these FPSOs’.
The four 150,000 b/d FPSOs at risk are:
- The P-66 floater, destined for the Lula South field, with first oil in 2017
- The P-67 floater, destined for the Lula North field, with first oil also in 2017
- The P-68 floater, destined for the Lula Extension South + South of Tupi (ToR) field, with first oil in 2018
- The P-69 floater, destined for the Lula West field, with first oil due in 2018.
Petrobras is the operator of the above fields in block BM-S-11 with a 65% stake, with BG Group holding 25% and Galp 10%.
Considered at a much lower delivery risk, it added, are the next three leased FPSOs planned for the Lula/Iracema fields, on which a unitisation process is currently also being negotiated for South of Tupi and an open area (PPSA).
The three lower-risk FPSOs, also with 150,000 b/d production capacities, are:
- The FPSO Cidade de Itaguaí, destined for the Iracema North field, with first oil due later this year
- The FPSO Cidade de Saquarema, destined for the Lula Central field, with first oil due in the first half of 2016
- The FPSO Cidade de Maricá, destined for the Lula Alto field, with first oil also due in the first half of 2016.
Galp also added that, in block BM-S-24, an appraisal campaign is underway on the Júpiter/Bracuhy discoveries, where there is a significant resource base of oil, condensates and gas mixed with CO2. A sequential development of oil and condensates is the base case, says Galp, with a pilot unit expected by 2019 or 2020 with FPSO studies already underway, it added.