Equinor and its partners ExxonMobil, Petrogal Brasil and Pré-sal Petróleo (PPSA) have decided to develop phase one of the Bacalhau field in the Brazilian pre-salt Santos area, splashing approximately $8bn on the project.
The development plan was approved by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) in March 2021.
The Bacalhau field development will consist of 19 subsea wells tied back to a floating production, storage and offloading unit (FPSO) located at the field. This will be one of the largest FPSOs in Brazil with a production capacity of 220,000 bopd and two million barrels in storage capacity.
The FPSO contractor will operate the FPSO for the first year. Thereafter, Equinor plans to operate the facilities until the end of the license period.
“Bacalhau is a globally competitive project with a break even below $35 in a key energy region. Estimated recoverable reserves for the first phase are more than one billion barrels of oil,” said Arne Sigve Nylund, Equinor’s executive vice president for Projects, Drilling and Procurement.
Equinor is the operator of Bacalhau with 40% interest. ExxonMobil also hods 40%, while Petrogal Brasil has a 20% stake.
First oil is planned in 2024. Due to the Covid-19 pandemic and related uncertainties, project plans may be adjusted in response to health and safety restrictions.