Exclusives

Petrobras, Brazil oil and gas, subsea oil and gas, rigid risers, flexible risers, presalt oil and gas

Challenges posed by the hostile environmental characteristics of Brazilian presalt oil and gas fields have prompted Petrobras to weigh use of rigid risers instead of flexible risers, which are mostly used by the company offshore Brazil.

A larger FPSO unit and subsea systems could be in store for the second phase of the ExxonMobil-operated Liza development offshore Guyana.

The Brazilian government could launch a mega-auction in June, but it needs to resolve issues regarding valuation of reserves first.

Karoon South America General Manager Tim Hoskings, Brazil oil and gas, subsea oil and gas, Echidna oil field

Karoon has been talking to suppliers to contract an FPSO unit for the field.

Shell Brazil, Shell Brasil, André Araújo, Royal Dutch Shell, Brazil oil and gas, Brazil oil production, E&P

Shell Brazil CEO André Araújo talks about the company’s plans and expectations for its future in Brazil’s oil and gas segment.

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

The French major said it was buying a 35% working interest in the Canje Block in an agreement signed with an affiliate of Canadian company JHI Associates Inc. and Guyana-based Mid-Atlantic Oil & Gas Inc.

GeoPark Ltd. (NYSE: GPRK) said on Jan. 17 it has successfully completed the drilling and testing of the Uaken 1 exploration well in the Fell Block in Chile.

Petrobras and Total said Jan. 15 they have completed the previously announced transaction involving Lapa and Iara area fields, finalizing a milestone in their strategic alliance signed in March 2017.

The Brazilian major intends to drill an average of 29 exploratory wells annually by 2020, nearly double the average number of wells drilled in 2016 and 2017.

ExxonMobil affiliate Esso Exploration and Production Guyana Ltd. began drilling the Ranger-1 well on Nov. 5, 2017, and encountered about 70 m (230 ft) of high-quality, oil-bearing carbonate reservoir.

Production

For a second month, a Reuters survey showed no sign of big OPEC producers boosting output significantly to cash in on rallying prices or to replace a decline in Venezuela.

With assets in Peru and Brazil, Australia’s Karoon has been progressing developments within South America’s oil and gas segment. Yet, Brazil is seen as a very strategic country for the company.

President Energy Plc said on Jan. 12 it retrieved successful results from its third and fourth workover wells at the Puesto Flores Field, Rio Negro Province, Argentina.

Venezuela’s oil production has increased to near 1.9 million barrels per day (MMbbl/d) after hitting a historic low last year, according to Manuel Quevedo, oil minister and head of state oil firm PDVSA, who vowed 2018 will see output rise to more than 2.4 MMbbl/d.

Brazil’s oil output fell 1.21% in November from October, while oil exports rose nearly 25%.

Technology

The Cubiro Field, located in Casanare province, produces 3,600 barrels per day (bbl/d). Average daily output in the Andean country fell 3.59% year-on-year in 2017 to 854,121 bbl/d, largely because of attacks and operational challenges at some fields.

The U.S. is considering restricting imports of Venezuelan crude oil and exports of U.S. refined products to Venezuela, U.S. Secretary of State Rex Tillerson said Feb. 4, to put pressure on socialist President Nicolas Maduro to “return to the constitution.”

The company said in a securities filing that it would pay 1.7 billion reais (US$538.5 million) in 12 monthly installments beginning this month.

Insufficient investment, payment delays to suppliers, and the sanctions imposed by the administration of U.S. President Trump have hammered Venezuela's oil industry and saw production fall.

Polarcus Ltd. said on Jan. 11 it has received a letter of award for the acquisition of a 3-D marine seismic project in South America.