Brazil's Petrobras Expects First Oil from Franco Field in 2015

- Brazil's Petrobras Expects First Oil from Franco Field in 2015

Tuesday, August 23, 2011
Dow Jones Newswires
RIO DE JANEIRO
by Jeff Fick

Brazilian state-run energy giant Petroleo Brasileiro, or Petrobras, expects to produce its first oil from the Franco field in 2015, a key executive said Tuesday.

Franco was one of the areas obtained from Brazil's government as part of last year's capitalization of the company, which included a $70 billion share offer.

A floating production, storage and offloading vessel, or FPSO, will be installed at the field in 2015, said Jose Formigli, Petrobras's executive manager for pre-salt exploration and production.

"We've already concluded seismic [imaging] of the area where the first production system will be installed," Formigli said.

Franco is expected to produce an average of 13,000 barrels a day in 2015.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Hamworthy Opens New Service Center in Brazil

- Hamworthy Opens New Service Center in Brazil

Monday, August 22, 2011
Hamworthy plc

Hamworthy is to open a new dedicated service center in Brazil.

The new service center represents a direct investment in a market that has offered sustained growth for the company's oil and gas handling systems and pump systems businesses in recent years.

With offices in Rio and planned workshops and warehousing operations in Macae it will support customers through easy access to spare parts from a domestic warehouse and qualified service personnel for all Hamworthy products, as well as related products and equipment installed onboard. The service center will also offer assistance to domestic yards during the installation and commission stages of construction.

The move, which highlights the company's commitment to Brazil's growing marine and offshore sectors, supports a string of recent orders won by the company.

Hamworthy Oil & Gas Systems was recently awarded a major contract by Brazilian shipyard Estaleiro Promar SA for the design and supply of cargo handling systems for eight liquefied petroleum gas (LPG) carriers destined for operation by Transpetro, a subsidiary of Petrobras. The vessels will be designed by Hamworthy's specialist naval architecture consultancy in Poland, Hamworthy Baltic Design Centre, along with the cargo tanks and cargo handling system.

Hamworthy Oil & Gas Systems recently completed installation of its VIEC (vessel internal electrostatic coealescer) system in the oil separator on Petrobras' Siri offshore installation. Hamworthy was also contracted to supply a complete VIEC system for Brazilian FPSO operator OSX for the OSX-1 FPSO, which will be chartered by owner OGX Petróleo e Gás Ltda for redeployment on Waimea (Block BM-C-41) in the Campos Basin.

Gusto BV (the design, engineering, procurement, project management and consultancy services arm of SBM Offshore,) recently specified seawater lift pumps and electric fire pumps from Hamworthy Pump Systems for installation onboard the Cidade de Paraty floating production storage and offloading (FPSO) vessel, due for delivery in Brazilian waters in 2013. Gusto will operate the FPSO on behalf of Petrobras in the Santos Basin pre-salt area.

Meanwhile, Hamworthy has received an order covering electrically-driven cargo pump systems for eight FPSOs from Brazilian shipyard Engevix Construcões Oceânicas S.A. The equipment will be delivered between 2012 and 2014. These vessels, each with capacity to store 1,600,000 barrels of oil, will be assigned to various field developments in the pre-salt area of Santos Basin.

Hamworthy's deepwell cargo offloading pumps and fire water pump systems were ordered recently by Teekay Operation for an FPSO to be constructed at Samsung Heavy Industries. With capacity to store 800,000 barrels of crude oil, the newbuilding FPSO will enter operation during the first quarter of 2014 in the North Sea's Knarr oil and gas field.

The run of contracts for Brazilian customers has also seen Hamworthy selected to supply equipment for the Papa Terra FPSO for BW Offshore. The company will deliver cargo pump room systems, seawater lift and firewater pumps for the FPSO, which is under conversion at COSCO Dalian, for delivery towards the end of 2011.

"Brazil is a key market for technology companies involved in marine and offshore," said Hans Jakob Buvarp, Managing Director, Hamworthy Brazil. "It is why we are extending our capabilities in terms of local service support and increasing local content supply."

Hamworthy has been present in Brazil since the 1970s, offering products and services through its local partner Tridente. Its new dedicated service centre will provide essential assistance to ship and offshore operators including the provision of spares and service to the growing Brazilian market.

Hamworthy continues to develop its technologies and solutions for offshore applications with its strong marine background, and many of its products are already operating in harsh conditions around the world in mission-critical upstream conditions.

Last year, Hamworthy delivered a fuel gas system to the Statoil operated field, Peregrino, also operating in Brazilian waters. The company said it was also experiencing increased interest from oil companies operating in Brazilian waters for its flare gas recovery and ignition systems that result in reduced emissions

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Aker Solutions Brazil Appoints New Subsea President

- Aker Solutions Brazil Appoints New Subsea President

Friday, August 19, 2011
Aker Solutions

Egil Boyum has been appointed president of Aker Solutions' subsea business in Brazil. Boyum, a Norwegian citizen, has been employed by Aker Solutions since 1984 and has held a range of management roles during this time.

"We have doubled the business since 2008 and need to strengthen our management capabilities to facilitate the continued growth. Hence we have recently recruited several new managers in Brazil and most recently, Egil Boyum, who is one of our most experienced managers," said Mads Andersen, executive vice president of Aker Solutions' subsea business area.

Boyum is an industry veteran and has held a wide range of roles from technical positions in his early career to being global head of operations, heading up global aftermarket and SVP of subsea systems. Boyum's current role of SVP involves heading up the win and client relationship function of major subsea products in Aker Solutions.

Boyum will replace Marcelo Taulois who has been leading Aker Solutions' Brazilian business since 2001. Taulois has developed new market opportunities through the three Brazilian hubs in Curitiba, Rio das Ostras and Rio de Janeiro and has also been a key player in the successful implementation of Aker Solutions' global policies and strategies within these regions. Aker Solutions will now look for other opportunities for Taulois within the company.

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A Snapshot of Brazil

- A Snapshot of Brazil

Friday, August 19, 2011
Rigzone Staff
by Trey Cowan

Brazilian offshore drilling activities are faring much better than worldwide operations. Total average utilization for Brazil's mobile offshore drilling fleet is 94 percent, which compares quite favorably to the global average of 80 percent. Similarly, average dayrates are much higher in Brazil than compared to the rest of the world. Currently, rigs (i.e. drillships, jackups, and semisubs combined) are garnering rates in the high-$310s while global average dayrates are in the mid-$230s.

The favorable disparity for both operating efficiency and dayrates is due largely to fleet mix. Most of the rigs operating off the coast of Brazil are exploring for oil in deeper waters. Hence, very little drilling in the region is accomplished using jackups; which typically command the lowest dayrates in the industry.

Brazil's semisub fleet utilization (a regional fleet of 52 competitively marketed rigs) is 98 percent, quite high by industry standards. Its drillship fleet, while much smaller at 17 marketed rigs, will continue to grow as newbuild equipment is delivered into the region. The jackup fleet is the smallest of the mix with just three competitive rigs on lease in the region. All three are currently under contract. Given the vast quantity of Brazil's discoveries, demand for offshore rigs shows only signs of growing as the country looks to further tap its ample reserves.

Recent News From the Region

• Pacific Drilling announced that its ultra-deepwater drillship the Pacific Mistral has been awarded a three-year contract by Petróleo Brasileiro S.A. (Petrobras) for operations in Brazil. The contract is expected to commence in the fourth quarter of 2011. Estimated maximum contract revenues, including mobilization and client requested modifications, are approximately $536 million.
• Rockhopper recently completed interpretation of its fast track new seismic data in PL032 and PL033. Seismic data shows that the Sea Lion Main Complex ("SLMC") will extend to the south and a new high case area extends over 90km2. Also, two new fan prospects were identified within the new seismic data, Casper and Kermit. Following completion of drilling operations on well 14/10-6, Rockhopper is committed to drill three further wells using the Ocean Guardian.
• Petrobras has commenced production from the P-56 platform at the Marlim Sul field in the Campos Basin. The unit began production through well 7-MLS-163HPRJS and will potentially generate around 16,000 bopd. The P-56 platform, installed in a water depth of 5,479 feet (1,670 meters), is designed to handle up to 100 Mcf/d when it reaches maximum capacity. This is expected to take place in the first quarter of 2012.
• The Sevan Brasil, which is under construction at Cosco Shipyard in China, is on schedule to be delivered during the first quarter of 2012. Upon delivery, the rig will set sail for Brazil to begin its six-year contract with Petrobras.

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Brazil's Pre-Salt Reserves to Boost Latin American Oil Production Growth

- Brazil's Pre-Salt Reserves to Boost Latin American Oil Production Growth

Friday, August 19, 2011
Rigzone Staff
by Karen Boman

Brazilian state energy company Petrobras' plans to develop its offshore pre-salt oil reserves will contribute in part to what Barclays Capital calls a "sizable upward shift" in hydrocarbons production through 2011 through 2020, according to Barclays' Global Energy Outlook. Brazil and Colombia are expected to experience increases hydrocarbons production during that time period, most concentrated in oil versus natural gas, Barclays noted.

Petrobras has unveiled plans to spend US $127.5 billion, or 57 percent of the resources under Petrobras' 2011-2015 Business Plan of US $224.7 billion, on exploration and production efforts. The company plans to increase total oil and gas output from 2.7 million boe/d in Brazil and abroad to 4 million in 2015 and 6.4 million in 2020.

Pre-salt output alone will add up to nearly 2 million boe/d in 2020, pushing the pre-salt's contribution to production from two percent today to 18 percent in 2015 and 40.5 percent by 2020. Petrobras will achieve this growth by setting up 30 extended well tests over the next five years, including 20 in the pre-salt cluster, and 10 in the post-salt area. Additionally, the company will spend US $1.3 billion per year on technology, which will include funding for efforts explore new frontiers, oil recovery and develop a new generation of offshore and undersea production systems.

Petrobras last month also confirmed the commercial potential of its Lula discovery in the pre-salt Santos Basin in water depths ranging from 6,890 feet to 7, 218 feet. Lula produced 28,436 b/d, according to Subsea IQ, and is the first well to produce from Brazil's high touted pre-salt offshore reserves. The well is interconnected to Cidade de Angra dos Reis FPSO and is the first of six production wells to be connected to the FPSO. Petrobras expects for the FPSO to produce around 100,000 b/d d throughout 2012.

Other companies are seeing significant potential in Brazil's pre-salt area. BG Group in June upgraded its estimate of its pre-salt Santos Basin interests to some 6 billion Boe net to BG Group with an upside potential of 8 billion BOE net. The new estimates results from the company's internal analysis of data gathered from drilling, appraisal and other data, including data collected from 29 wells drilled in BG's existing discoveries.

"Robust economics and solid progress with the fast-track development program will see gross installed production capacity rising steadily to reach more than 2.3 million boe per day by 2017," said BG Group Chief Executive Sir Frank Chapman.

Other companies active offshore Brazil include OGX, which has identified the presence of hydrocarbons in the Santonian section of well 1-OGX-47-RJS in the BM-S-59 block in the shallow waters of the Santos Basin, according to Subsea IQ. The operator found a hydrocarbon column of about 430 feet in sandstone reservoirs of the Santonian section with about 167 feet of net pay. The OGX-47 well, named Maceio, lies about 68 miles off the coast of Rio de Janeiro in a water depth of 607 feet. The Ocean Quest semisub drilled the well.

Chevron reported last month that it plans to drill a well later this year in the pre-salt section beneath its Frade field offshore Brazil. The company will drill the well using Transocean semisubmersible Sedco 706, according to RigLogix. "If successful, we'll be in a great position to take advantage of our existing production facilities," said George Kirkland, vice chairman and EVP of Global Upstream and Gas at Chevron.

Petrobras' ambitious drilling plans include constructing newbuild rigs within Brazil; these plans make it likely that service companies will beef up investments in Brazil to meet their customers' needs. National Oilwell Varco (NOV) this week signed contracts to supply drilling equipment packages for seven drillships to Estaleiro Atlantico Sul, including drilling riser and pressure control equipment. The value, over the term of the deliveries, is approximately $1.5 billion. Pete Miller, Chairman, President and CEO of National Oilwell Varco, said the company is investing heavily in Brazil to manufacture more of the products and technologies National Oilwell Varco provides to its oil and gas customers, and to service the rapidly growing installed base of NOV drilling equipment in the region.

Sedco 706

The significant distance at which pre-salt reserves lie offshore Brazil means that operators will likely continue to favor floating production systems as field development solutions. Brazilian waters will be the most active region for future floating production projects, with 50 potential floater projects in the planning cycle, according to a recent report by International Maritime Associates Inc. Of the 50 potential projects, 26 are planned for ultra-deepwater, or water depths greater than 4,921 feet; five are planned for deepwater, or water depths between 3,280 feet and 4,921 feet, and 19 for water depths less than 3,280 feet.

Keppel Shipyard is on track to complete the modification and upgrade of FPSO OSX-1, the first floating production storage and offloading FPSO unit for OSX Brazil S.A. Chartered to OGX Petroleo e Gas Participacoes S.A., the FPSO will be deployed in the Waimea field in the Campos Basin offshore Brazil. The FPSO is expected to leave Keppel in this year's third quarter; production is expected to begin in this year's last quarter at a rate of up to 20,000 b/d from the OGX-26 well.

OGX in June unveiled its business plan related to discoveries in the Campos and Parnaibas basins. Waimea and the Waikiki production is expected to begin in the fourth quarter of 2013. In 2013, the company expects to have three Floating Production Storage Offloading FPSOs (OSX-1, OSX-2 and OSX-3) and two Wellhead Platforms "WHPs" (WHP-1 and WHP-2) in place with a total of ten horizontal production wells onstream in these two projects. OGX expects to achieve 150,000 b/d of production from the Campos Basin in 2013 in these two production complexes from 10 horizontal wells producing an average of 15,000 b/d each.

The gas production ramp-up in the Parnaíba Basin is expected to begin in the second half of 2012. OGX has one project covering two accumulations in the PN-T-68 block, which is 46.7% owned by OGX, and is expected to achieve gross production of 5.7 million m3 of natural gas per day (approximately 200 MMcf/d), or approximately 36,000 BOE/d in 2013 (approximately 15,000 BOE/d net to OGX).

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Halliburton Breaks Ground at Brazil Technology Center

- Halliburton Breaks Ground at Brazil Technology Center

Tuesday, August 16, 2011
Halliburton Co.

Halliburton broke ground at the construction site of its new Technology Center at the Federal University of Rio de Janeiro (UFRJ) Technology Park, located at Ilha do Fundão, Rio de Janeiro, Brazil. The groundbreaking represents a milestone in the Cooperation Agreement signed in 2010 between Halliburton and the UFRJ for the purpose of providing research and technology development projects in Brazil.

"The Halliburton Brazil Technology Center will provide solutions and services that Halliburton can implement to accelerate deepwater field
development and to continue enhancing production from mature fields," said Tim Probert, president of Strategy and Corporate Development for Halliburton. "It is also an excellent opportunity for our company to collaborate with leading Brazilian universities and customer research centers to solve subsurface challenges in an innovative and economical manner."

The new 7,062-square-meter technology center will have three floors and include specialized laboratories, a collaboration room, a testing area, and conference and training rooms.

Halliburton has had a presence in Brazil for more than 50 years.

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Serimax Clinches Welding Contract for Subsea 7 in Brazil

- Serimax Clinches Welding Contract for Subsea 7 in Brazil

Tuesday, August 16, 2011
Serimax

Serimax, a 100% subsidiary of Vallourec, has been awarded the welding contract for the Gas Sul North Capixaba (GSNC) project by Subsea 7 in Brazil.

Serimax will provide welding services on 151km of 18" sour service pipeline, which will run parallel to the Brazilian coast and links the Camarupim Field gas pipeline to the Parque des Baleias complex.

The project management will be run from Serimax's Brazilian facility, with welder performance qualification taking place in Houston and offshore installation onboard the vessel Polaris scheduled to start in November and completed toward the end of February 2012.

Mickael Dolou, Serimax's Brazil area manager, said, "Winning this award is a reflection of the commitment we have made to establishing Serimax as the leading welding contractor for the export/shallow water pipeline market in Brasil and South America.

"We have invested in infrastructure and manpower to offer clients extensive local contact both pre and post project, and hope that our quality of service and strong commitment for continuous improvement will open up further opportunities to work with Subsea 7."

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SBM Offshore Clinches LOI for FPSO Lease Offshore Brazil

- SBM Offshore Clinches LOI for FPSO Lease Offshore Brazil

Thursday, August 11, 2011
SBM Offshore

SBM Offshore announced that one of its Affiliates and Queiroz Galvao Oleo e Gas S.A. (QGOG), have received two Letters Of Intent (LOI), one from GUARA BV and one from BM-S-9 Consortium, established by the companies Petrobras (Operator, 45%), BG E&P Brasil (30%), and Repsol Sinopec Brasil S.A. (25%) for a twenty year charter and operation of an FPSO for the Guará Norte development in the pre-salt area, offshore Brazil.

The Guará Norte field is located in block BM-S-9 in the Santos basin at approximately 300 kilometers offshore and 2,300 meters water depth. The FPSO will include topside facilities to process 150,000 bpd of production fluids, associated gas treatment for 6,000,000 Sm3/d with compression and carbon dioxide removal, hydrogen sulphide removal, and a water injection facility for 180,000 bpd.

It is the intention that the unit will be owned and operated by a consortium in which SBM Offshore's shareholding will not be less than 49.5% and not exceed 62.25%.

The project schedule foresees delivery of the FPSO in 35 months from LOI.

The non-discounted total of the revenues payable under this contract to the consortium, excluding escalation and bonus, amounts to approximately US $4.5 billion.

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Tambora Wildcat Sings for OGX Offshore Brazil

- Tambora Wildcat Sings for OGX Offshore Brazil

Monday, July 25, 2011
OGX S.A.

OGX has identified the presence of hydrocarbons in the Santonian and Albian sections of well 1-OGX-52-RJS in the BM-C-41 block, in the shallow waters of the Campos Basin. OGX holds a 100% working interest in this block.

''This new discovery nearby the Waimea accumulation successfully tested Albian calcarenites in a deeper position, completely independent of the prior discovery. Also, it is important to note the discovery of oil in sandstone reservoirs of the Santonian age. These discoveries confirm, as we have mentioned, significant potential remaining resources in this important oil province in the southern portion of the Campos Basin,'' said Paulo Mendonça, General Executive Officer and Exploration Officer of OGX.

A hydrocarbon column of approximately 12 meters was encountered in the sandstone reservoirs of the Santonian section with about 5 meters of net pay. In addition, a hydrocarbon column of approximately 174 meters was encountered in carbonates of the Albian section with around 96 meters of net pay.

The OGX-52 well, known as Tambora, is located in the BM-C-41 block and is situated approximately 93 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 130 meters. The Ocean Ambassador rig initiated drilling activities on July 04, 2011.

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Farstad Strengthens Brazil Position with Acquisition

- Farstad Strengthens Brazil Position with Acquisition

Monday, July 18, 2011
Farstad Shipping

Farstad Shipping ASA has reached an agreement with Petroserv S.A. in Brazil, on certain conditions, to buy Petroserv's 50% share in BOS Navegação S.A. Farstad Shipping will after the purchase have 100% ownership of BOS. The net purchase price for the 50% share is USD 56.5 million. The acquisition is expected to be consolidated in Farstad Shipping's accounts as from 1 July 2011.

BOS was established in June 1999 as a joint venture between Farstad Shipping and Petroserv. Today the company owns 3 AHTS on contracts with Petrobras. In addition BOS operates 10 Farstad vessels in Brazil. BOS' offices in Rio de Janeiro and Macaé employ 35 people onshore and 325 people offshore.

To Farstad Shipping this agreement represents a strengthening of our position in Brazil, a market of considerable growth.

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Total Eyes Brazil Pre-Salt Resources Development Role-Exec

- Total Eyes Brazil Pre-Salt Resources Development Role-Exec

Thursday, July 07, 2011
Dow Jones Newswires
PARIS
by Geraldine Amiel

Total is "well prepared" to take part in the development of Brazil's pre-salt oil resources, Total's head of exploration and production, said Yves-Louis Darricarrere.

Speaking during a conference on Brazil here, Darricarrere said the country is "a land of opportunity" for oil groups such as his.

Brazil's pre-salt resources are located on the deep-offshore field of Santos.

Total acquired in June 2010 a 20% interest in the BM-S-54 block on Santos, operated by Shell. The block is being explored, and no production has been planned yet.

"Total is well prepared to participate and is waiting for Brazil to decide when these interesting areas will be open," Darricarrere said on the country's pre-salt resources.

"In the short term, the announced 11th concession round which deals with non pre-salt discoveries will certainly be of interest to us," he also said.

Total also owns a 41.2% interest in the BC-2 block and a 50% interest in the BM-C-14 block both located on the Campos field, which is non pre-salt.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Petrobras Makes O&G Discoveries Offshore Brazil

- Petrobras Makes O&G Discoveries Offshore Brazil

Tuesday, July 05, 2011
Petrobras

Petrobras announces new discoveries of oil and gas in Espírito Santo Basin, within the Concession Area BM-ES-23, Block ES-M-525, totaling 3 discoveries in this concession.

These new discoveries are 115 km far from the coast of the State of Espírito Santo, at water depths of about 1,900 meters, and occurred during the drilling of wells 1-BRSA-939-ESS (1-ESS-199) and 1-BRSA-936D-ESS (1-ESS-200D), informally referred to as Pé-de-moleque and Quindim. Recently, another discovery found after the drilling of well 1-BRSA-926D-ESS (Brigadeiro) has been announced.

Petrobras is the operator of the consortium for exploration of Block BM-ES-23 (65%), further constituted by companies Shell Brasil Petróleo Ltda. (20%) and Inpex Petróleo Santos Ltda. (15%). The consortium will continue the activities referring to the Minimum Exploratory Program within the concession area.

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BG Doubles Santos Basin Net Potential

- BG Doubles Santos Basin Net Potential

Thursday, June 30, 2011
BG Group

BG Group on Thursday issued a material upgrade for its interests in the pre-salt Santos Basin, offshore Brazil.

Mean Total Reserves and Resources* are now estimated to amount to some 6 billion barrels of oil equivalent (boe) net to BG Group, with an upside potential of 8 billion boe net. Existing discoveries account for 96% of the mean Total Reserves and Resources.

The mean Total Reserves and Resources represents a doubling of BG Group's previous best estimate of 3 billion boe prevailing at the time of the Group's February 2010 Strategy Presentation.

The aggregate range of Total Reserves and Resources net to BG Group is from 4 billion boe (P90) to 8 billion boe (P10)**.

These new estimates result from BG Group's internal analysis based on probabilistic modelling of its Santos Basin interests. The analysis used a wealth of drilling, appraisal and other data that BG Group has gained or developed in relation to those interests, including:

• a total of 29 wells drilled in our existing discoveries; two wells drilled on Lula since November 2010 proving particularly important in delineating the flanks of the field. Other wells have demonstrated excellent connectivity in the reservoir;
• a total of 19 drill stem tests on current discoveries;
• the shooting and analysis of over 14,400 square kilometers of 3D seismic;
• full analysis of a completed extended well test (EWT) on Lula Sul and early results from the Guara EWT indicating the very large hydrocarbon volumes connected to each of these wells;
• production from the first permanent floating production, storage and offloading vessel on Lula which commenced in October 2010;
• development plans that include enhanced recovery processes to improve ultimate recovery factors for these giant fields; and
• cost optimization, potential debottlenecking of facilities and greater well productivity enhancing the economic viability of later phases of development.

BG Group Chief Executive Sir Frank Chapman said: "The doubling of our estimated Santos Basin mean reserves and resources is clearly significant and demonstrates the continued rapid evolution of our understanding of these enormous discoveries. Robust economics and solid progress with the fast-track development program will see gross installed production capacity rising steadily to reach more than 2.3 million boe per day by 2017. I believe this - alongside progress with major ventures in Australia, the US and across our global portfolio - will transform the scope, scale and value of BG Group."

* Total Reserves and Resources are defined by BG Group as the aggregate of proved and probable reserves plus discovered resources and risked exploration.

** The Total Reserves and Resources upgrade announced today is based upon probabilistic modelling by BG Group of its interests in the Santos Basin, in accordance with Society of Petroleum Engineers (SPE) guidelines. The data has been analyzed, interpreted and verified by BG Group and not by the Operator or other Consortium partners.

BG Group has interests in five blocks in the Santos Basin, offshore Brazil

• BM-S-9 (30%) containing the Guara, Carioca, Abare and Iguacu discoveries and prospects.
• BM-S- 10 (25%) containing the Parati and Macunaima discoveries and prospects.
• BM-S-11 (25%) containing the Lula, Cernambi and Iara discoveries and prospects.
• BM-S-50 (20%) containing prospects including Sagittario.
• BM-S-52 (40%) containing the Corcovado discovery.

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Repsol, Partners Make Discovery Offshore Brazil

- Repsol, Partners Make Discovery Offshore Brazil

Tuesday, June 28, 2011
Repsol YPF

Repsol Sinopec and its partners Statoil and Petrobras have made a discovery of good quality oil in the 1-REPF-11A-RJS well, informally known as Gávea. The find in Gávea is the most significant made in the pre-salt area of the Campos Basin.

The well, located 190 kilometers off the coast of Rio de Janeiro, was drilled with the latest-generation Stena DrillMAX drillship in a water depth of 2,708 meters (8,885 feet), reaching a final depth of 6,851 meters (22,477 feet).

The consortium is currently analyzing the results of the well before continuing with exploration and evaluation work in the area.

Repsol Sinopec, with a 35% stake, is the operator of the exploration consortium, in partnership with Statoil (35%) and Petrobras (30%).

Repsol Sinopec and the consortium informed the Brazilian authorities of the existence of traces of hydrocarbons in the Gávea exploratory well in March 2011 for the first level and April for the second one.

Repsol Sinopec is the largest foreign owner of exploration rights in the Santos, Campos and Espírito Santo basins, participating in 16 blocks of which it operates 6.

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Brazil OSX Gets Go-Ahead to Start Building Acu Shipyard

- Brazil OSX Gets Go-Ahead to Start Building Acu Shipyard

Monday, June 27, 2011
Dow Jones Newswires
RIO DE JANEIRO
by Jeff Fick & Diana Kinch

Brazilian oil-field services company OSX Brasil said Monday that it had received approval to start construction of a shipyard at the Acu Port complex in Rio de Janeiro state.

OSX will start work next month to build "the largest shipyard in the Americas," the company said. OSX, part of billionaire Brazilian businessman Eike Batista's industrial conglomerate, will partner with South Korea's Hyundai Heavy Industries Co. to build the shipyard, the company said.

Brazil's ship-building industry is undergoing a renaissance as the company ramps up production to meet growing demand from the country's oil and natural-gas industry. Several new shipyards are under construction along Brazil's Atlantic Ocean coast, while many yards that were closed during an industry downturn in the early 1980s are being revived.

Brazil was among the world's largest ship producing countries in the 1980s before a global downturn in the industry saw the local docks shuttered.

Last week, OSX said that it had received approval for a credit line worth up to 2.7 billion Brazilian reais ($1.69 billion) from Brazil's Merchant Marine Fund to finance construction of the shipyard.

OSX plans to build vessels for sister company OGX Petroleo e Gas Participacoes, which will produce crude oil from the Campos Basin off the coast of Rio de Janeiro state. The 2,400-meter docks at the shipyard will have the capacity to build up to 11 floating production, storage and offloading vessels, or FPSOs, at the same time. The FPSOs use hulls about the size of an oil supertanker.

Another OSX sister company, LLX Logistica, which is responsible for construction of Acu port, said Monday it gained an environmental permit to construct a navigation channel within the port. The channel, called TX2, will provide 8,000 meters of quayside, substantially boosting the quayside capacity available on the port's coastal stretch.

Part of the additional quayside space will be used by the OSX shipyard, while the rest is planned for use in loading and unloading of products including steel, coal, granite and oil, LLX said.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Peregrino Success Escalates Statoil Status Offshore Brazil

- Peregrino Success Escalates Statoil Status Offshore Brazil

Friday, June 03, 2011
Rigzone Staff
by Jaime Kammerzell

The Peregrino field is 85 mi off Rio de Janeiro

Statoil started production from its Peregrino field offshore Brazil in early April. The Peregrino field is 85 km offshore Brazil from Rio de Janeiro in the Campos basin in about 100 m of water.

Back in 1994 when the field was discovered, Statoil wasn't even a shareholder in the BMC-7 and BMC-47 licenses, which were known as the Chinook field.


Original shareholders were Anadarko Petroleum Corp. with a 50% stake and EnCana Corp. with the remaining 50% stake. Statoil (formerly Hydro) purchased its 50% operating stake in the field from EnCana for $350 million in August 2006.

"The acquisition of Peregrino makes (Statoil) Hydro a major player on the Brazilian continental shelf. We have now established an excellent platform for further growth in an area with large oil and gas resources," Tore Torvund, Norsk Hydro executive vice president, said in November 2006.

StatoilHydro took control of the entire Peregrino field in December 2008 when it bought out Anadarko's stake. The agreement included Anadarko's 25% stake in the Kaskida discovery in the US Gulf of Mexico. The combined purchase price was $1.8 billion, plus a maximum pre-tax value of $300 million related to the Peregrino field to be earned by 2020, conditional on future oil prices above pre-defined threshold levels.

Statoil then agreed sell a 40% share in the Peregrino field to Sinochem Group, China's biggest chemicals trader, for $3 billion. The partners also entered into a Memorandum of Understanding (MoU) that underlined the wish of the two companies to jointly investigate further opportunities in Brazil and elsewhere.

At the time of the announcement, Statoils's CEO Helge Lund said, "The MoU is the beginning of a long term relationship between our two companies having similar international growth ambitions. I believe that we have supplementary skills and areas of expertise, strengthening both our opportunities globally by cooperation."

Lund continued, "In addition, we look forward to partner with Sinochem Group in the further development and operations of the large Peregrino field. Both companies see many opportunities for value creation through increased recovery and exploration for additional resources in the decades to come.

Field Development

Phase One of Statoil's field development plan included two drilling and wellhead platforms and a large floating production, storage and offload unit (FPSO). "The plan call(ed) for a total of 30 horizontal production wells to be drilled, together with seven water injection wells," said Statoil's Peregrino production director Johan Kr. Mikkelsen.

In drawing up the field development plan, Statoil relied on its competence and experience gained while developing similar fields on the Norwegian continental shelf and drilling horizontal wells to increase recoverable reserves.

Hydro chartered AP Moeller – Maersk A/S (Maersk) to build the FPSO in February 2007. The FPSO was scheduled for installation in early 2010 in anticipation of start up later that year; however first production was delayed several months. The partners also entered into an agreement to rent two drilling platforms, which Kiewit Offshore Services Ltd. of Ingleside, TX, built for the Peregrino field.

In March 2007, Hydro submitted the Declaration of Commerciality for the Peregrino oil field to the Agencia Nacional do Petroleo (ANP) in Rio de Janeiro. The ANP approved the Plan of Development (POD) in mid-May that year.

More contracts quickly followed. The partners awarded Subsea 7 a $115 million contract for engineering, procurement, fabrication, and installation of six steel pipelines, 12 flexible risers, four power cables and two mid-water arches to support the cables. Subsea 7 installed the pipelines in Q1 2009. And Wellstream was tapped to supply twelve 11.5 in. ID flexible risers to connect subsea pipelines to two wellhead platforms and an FPSO in 125 m of water. Prysmian Cables & Systems supplied 20 km of Dynamic subsea power and communication umbilicals.

In November 2007, StatoilHydro along with Anadarko won two blocks in the National Agency of Petroleum's ninth bidding round. Blocks CM529 and CM 530 are in 100 m of water adjacent to the Peregrino field. The partners hoped to expand the Peregrino field into these blocks in the future.

Shortly thereafter, StatoilHydro announced that the Peregrino reserves estimates increased to 300 to 600 MMbbl, double that of the original estimates. Statoil planned to use produced water injection and rock compaction, which would yield a recovery factor of 20% compared to the original estimate of 9%. The operator planned for 23 extra well slots for the potential use of multilateral wells that would further increase the recovery factor from the reservoir.
In the first half of 2008, Statoil awarded several more key contracts. J Ray McDermott engineered, procured, and constructed 6,500 metric tons of topside modules for the Peregrino FPSO. Fabrication and construction started in Q3 2008 and was completed in Q4 2009.

Deepwater Specialists Inc. (DSI) provided commissioning activities in the US for the two drilling and wellhead platforms. DSI coordinated and managed the commissioning activities for the interfaces with the drilling modules installed on the platforms.

Each platform comprises an eight-legged jacket structure; foundation piles; well slot conductors; deck structure, equipment and systems; and wellhead decks, including cranes. Commissioning of the platform decks, which were designed by Mustang Engineering, and the living quarters were performed at fabrication yards in South Texas.

The Heerema Hermod heavy lift vessel installed the two wellhead platforms in March 2010. The two jacket substructures for platform A and B were installed in 2009.

Hermod installed the two wellhead platforms.

In addition, ClampOn equipped the subsea production manifolds in 8,200 ft of water with their subsea sand and pig detectors. And BW Offshore delivered and installed the completed submerged turret production (STP) buoy, including swivel stack, and mooring system. First Subsea provided 10 Ballgrab ball and taper connectors, which were attached around the side of the buoy ahead of tow out in December 2009, thus simplifying buoy lifting and tow out operations. Once in buoy was in position, the male Ballgrabs and mooring lines were connected subsea with assistance by ROV, with no need for divers.

The offshore construction vessel Boa Deep C installed the FPSO's mooring systems in early 2010.

Keppel then delivered the converted Maersk Peregrino in Q3 2010. Keppel converted the Maersk FPSO according to stringent requirements to handle heavy crude and operate in the challenging environment off Brazil.

Nils S. Andersen, Group CEO of Maersk, said, "Tailoring the FPSO to meet the requirements of the Peregrino field (was) a complex undertaking. We (chose) Keppel Shipyard for this massive project due to the skills and competencies of the Keppel yards."

Work on Maersk Peregrino involved the marine conversion of a newbuild VLCC (Very Large Crude Carrier); the installation and integration of the topside modules; the assembly, installation and integration of the APL internal turret; the fabrication and installation of the flare tower, process piperack and helideck; and the upgrading of the accommodation quarters.

The Maersk Peregrino has a storage capacity of 1.6 MMbbl, and processes 100,000 b/d.

Maersk Peregrino

Statoil started production at the Peregrino field in early April 2011. Production is expected to ramp up to 100,000 boe/d. The discovery made Statoil an important long-term operator and partner in Brazil's growing oil and gas industry.

"With the Peregrino field in full operation Statoil will be the second-largest operator in Brazil, and it offers us an excellent opportunity for future growth in the country. The Peregrino field is a legacy asset and will contribute significantly to both Statoil and Brazil's oil production for many years to come," said Helge Lund, president and CEO of Statoil.

Less than two weeks later, Statoil announced that it had found a new oil find adjacent to the Peregrino field. An exploration well drilled by the Blackford Dolphin in 120 m of water in the Peregrino South structure a few kilometers south of Peregrino encountered oil in sandstones of the Carapebus geological formation. A significant gross oil column of 130 m was proven in the well and further work was performed to confirm the volumes.

"The results confirm the significant potential in the Peregrino area and underline the beliefs we have had in the upside," said Tim Dodson, executive vice president for Exploration in Statoil.

"The results will indeed be implemented into our plans for further development of the field," said Kjetil Hove, head of Statoil's Brazil activities and vice president in the company's Development and Production International business area.

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Petrobras to Invest $27B in Brazil Exploration through 2014

- Petrobras to Invest $27B in Brazil Exploration through 2014

Thursday, May 26, 2011
Dow Jones Newswires
by Jeff Fick

Petrobras will invest $27 billion on domestic exploration through 2014, the company's area manager for exploration and production said Thursday.

"In the near future, we will drill 573 wells," Petrobras Hugo Repsold said during a presentation at the Latin Oil Week conference. The wells will be primarily focused in provinces in the southeast part of Brazil, Repsold said.

Petrobras could boost crude oil output to 3 million barrels a day by 2014, with natural gas production of about 75 million cubic meters a day as new projects come on line, Repsold said.

The federal oil company is still evaluating its full five-year investment plan that will cover the 2011-2015 period, which is expected to include the first investments in areas that were part of an oil-for-shares swap with the government last year. But the company's board of directors earlier this month asked that the investment plan be reviewed, causing a delay in its release.

Petrobras' previous investment plan, covering the 2010-2014 period, envisioned total investments of $224 billion.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Aker to Supply Offloading Systems in Brazil

- Aker to Supply Offloading Systems in Brazil

Thursday, May 26, 2011
Aker Solutions

Aker Solutions has won two similar contracts, together worth approx. 120 million NOK, from CQG Oil & Gas Contractors Inc. and CCI Oil & Gas Contractors Inc., for the supply of Pusnes offloading systems (TM) to two FPSOs in the Brazilian market.

The offloading systems will be installed on the two FPSOs P-58 and P-62, which are being converted and built for Petrobras.

The two FPSOs are spread moored FPSOs, and will use the field proven Pusnes offloading system (TM) at both bow and aft ends. These offloading systems include tanker mooring and crude oil transfer components as well as emergency offloading stations. Crude oil from the FPSOs will be loaded on to dedicated dynamic positioned shuttle tankers. Aker Solutions last year secured the mooring contracts for the same FPSOs.

The Pusnes offloading system (TM) is recognized by the industry for having established an environmentally responsible, safe and secure connection from the FPSO via a crude oil hose to the dynamic positioned shuttle tanker's bow loading system. In the event of an emergency, the oil flow can be quickly stopped and the vessels disconnected rapidly and safely.

"Aker Solutions' mooring and loading systems have attained a unique position in Brazil. We have signed more than a dozen contracts for various clients in Brazil," said Leif Haukom, head of Aker Solutions' mooring and loading systems business.

As previously communicated, Aker Solutions is also supplying Pusnes mooring systems (TM) to P-58 and P-62, under the terms of a contract with Petrobras.

Delivery of the offshore loading systems to P-58 and P-62 FPSOs will take place in 2011/2012. The contract party for Aker Solutions is Aker Pusnes AS.

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BP Clears Hurdle to Acquire Brazil Blocks from Devon

BP Clears Hurdle to Acquire Brazil Blocks from Devon

Wednesday, May 11, 2011
BP plc

BP on Tuesday announced it has received final approval to complete the purchase of ten exploration and production blocks in Brazil from Devon Energy.

The regulatory approvals from the Brazilian National Petroleum, Natural Gas and Biofuels Agency (ANP) were the last required to conclude the agreement announced in March last year. It is expected formal completion of the acquisition will take place shortly.

The blocks acquired will give BP a diverse and broad deepwater exploration acreage position offshore Brazil with interests in eight license blocks in the Campos and Camamu-Almada basins in water depths ranging from 330 to 9,100 feet (100-2,780 meters), as well as two onshore licenses in the Parnaiba basin. The Campos basin blocks include four discoveries — Xerelete, pre-salt Wahoo, Itaipu and Fragata — and the Polvo field, which is currently producing around 25,000 barrels of oil per day.

"We are pleased to receive the approvals. The completion of this acquisition delivers a material position in some of Brazil's most important hydrocarbon basins and reinforces the group's strategy of securing strong exploration positions in such basins and working with strong national champions," said BP group chief executive Bob Dudley. "We believe these blocks add distinctive value to our asset base, and offer significant long-term growth potential."

"It is exciting to participate in the development of the oil industry in such an important country as Brazil and the Devon acquisition provides us with an excellent growth platform," said Guillermo Quintero, BP Brazil Regional President.

Last month BP completed the acquisition of the majority control of Brazilian producer of ethanol and sugar Companhia Nacional de Acucar e Alcool (CNAA). BP paid approximately $ 680 million to acquire 83% of the shares and refinance 100% of the company's long-term debt. BP will now be responsible for operating two ethanol plants located in Ituiutaba (Minas Gerais) and Itumbiara (Goias), with current capacity of processing 5 million tons of sugar cane per year.

The blocks are part of the transaction between BP and Devon Energy announced in March 2010. Most of Devon's employees in Brazil are expected to join BP. The transaction is a corporate share sale whereby BP will obtain ownership of Devon Energy do Brasil Ltda., the Devon entity that owns interests in the blocks.

The acquisition gives BP interests in one currently producing field (Polvo) and 4 existing discoveries (Xerelete, Itaipu, Wahoo and Fragata). BP becomes operator of the Polvo field, and of blocks BM-C-32 (containing the Itaipu discovery) and BM-C-34 (consisting of C-M-471 and C-M-473, and containing the Fragata discovery) in the Campos Basin; Block BM-CAL-13 in the Camamu-Almada Basin; and onshore Block BT-PN-2 in the Parnaiba Basin.

BP also gains non-operating interests in blocks BM-C-30 (containing the Wahoo discovery), BM-C-35 and the Xerelete discovery (formerly the BC-2 block), all in the Campos Basin; as well as onshore Block BT-PN-3 in Parnaiba Basin.

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Lauritzen Marks Brazil Offshore Services Milestone

Lauritzen Marks Brazil Offshore Services Milestone

Friday, May 06, 2011

Lauritzen Offshore has fulfilled the first part of its strategy to become an important partner in the offshore services market with special focus on deep water employment offshore Brazil.

Recently Lauritzen Offshores unique Accommodation and Support Vessel, Dan Swift, was contracted by Petrobras. Prior to its employment for Petrobras, Dan Swift was employed offshore Brazil by Statoil and most recently by a Shell project offshore Nigeria.

In Brazil, Dan Swift will be part of Petrobras new fleet of service units for maintenance and safety (Unidade de Manutencao e Seguranca). Dan Swift will be deployed to accommodate close to 300 people for Petrobras in Campos Basin offshore Brazil.

Dan Swift is the first monohull accommodation and support vessel to service the high end of the offshore market. In addition to its modern accommodation facilities, the dynamically positioned DP-2 vessel is equipped with two independent offshore telescopic gangways, which have proved very efficient for safe personnel transfer while Dan Swift remains constantly connected to fixed and floating offshore installation in DP mode.

In addition to Dan Swift, Lauritzen Offshore has three dynamically positioned shuttle tankers on long-term contracts with the Brazilian company.

The long-term contract for Dan Swift is due to commence in July 2011 and the combined contract value of Lauritzen Offshores engagement with the Petrobras group exceeds USD 550 million.

"We are extremely pleased with our cooperation with Petrobras, which is one of the biggest and most demanding energy corporations in the world. We have in our strategy been focused to serve Petrobras in Brazil," says Torben Janholt, President and CEO of J. Lauritzen A/S.

"With the recent employment for Dan Swift, Lauritzen Offshore has not only fulfilled the initial part of its strategy, but also confirmed our ability to establish long-term business relations with some of the most demanding customers in the offshore services market. Top performance, quality and safety play an important part in this industry," says Jesper Kragh Andresen, President of Lauritzen Offshore Pte. Ltd.

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