The company stated that the firms want to expand future production from the Bacalhau oil field; Equinor’s largest project outside of Norway, with more than 1 billion barrels of oil.
According to three people close to the discussion, the company is undergoing an evaluation of a second drilling rig and a second floating production platform for the next phase, along with a more than 100-mile-long gas pipeline.
For Exxon, Bacalhau could provide its first barrel of oil from offshore Brazil; one of its most significant growth prospects, and a new oil supply from lower carbon operations. First oil is expected in 2024 from the venture’s 220,000 barrel per day (BPD) production vessel.
Exxon directed questions to Equinor, which utilizes the field. Equinor disclosed to Reuters that it plans to drill a new appraisal north of the Bacalhau field next year better to comprehend the reserves base for the Phase 2 development.
The partners are considering awarding a contract for a second drilling rig. A spokesperson stated that pre-drilling of phase 1 wells should begin in the third quarter of this year. Equinor did not remark on plans for a new FPSO or pipeline.
Investment Might Double
Two people close to discussions stated that the second phase could potentially double the project investment if the new investigation works are successful.
One of the issues is whether the field will produce enough oil to justify a second floating platform or FPSO and a gas pipeline to obtain the field’s natural gas to shore.
Equinor and Exxon could utilize a subsea tieback if the findings do not explain a second platform, two of the people said. Wells would be related to the first FPSO, reinjecting the gas into the reservoir.