Building a core area in Brazil

August 29, 2018 08:30 CEST
Photo of the West Saturn drillship
The West Saturn drillship. (Photo: Seadrill)

With daily oil production of over 90 000 barrels per day from current fields and with expected investments of more than 15 billion USD until 2030, Brazil has become a core area for Equinor.

Brazil stands out globally as one of the most promising offshore oil and gas basins with a significant remaining resource base. In addition, the country has a huge potential within renewable energy.

Brazil towards 2030
Brazil is a great fit with Equinor’s strategy, using the strengths from the experience on the Norwegian Continental Shelf. Currently Equinor has activity across the value chain, from exploration, through discoveries and development, and into production, as well as within renewable energy.

As of August 17, Development and Production Brazil has been established as a separate business area illustrating the importance of the potential in the country.

“We have been building a presence in Brazil since 2001, and we have been able to establish a broad energy portfolio in the country. With around 10 billion USD already invested, and more than 15 billion USD expected to be invested until 2030, we show how we are working to create value for both Brazil and Equinor,” says Anders Opedal, executive vice president for Development and Production Brazil in Equinor.

Equinor’s assets in Brazil include the producing Peregrino field and the second phase of that project that is due to come on stream in 2020, a 25% share in the giant Roncador field, the significant pre-salt discoveries of Carcará and Pão de Açúcar, as well as globally competitive exploration acreage. In 2017 Equinor also joined as a partner in the Apodi solar project, which will deliver energy to 160,000 households by end of this year.

Tom Dodson (left) and Anders Opedal
Tim Dodson (left) and Anders Opedal. Click the links at their names in the article for portrait downloads.

“We have a portfolio with the potential to produce between 300,000 and 500,000 barrels of oil equivalent per day in 2030, depending on phasing of projects and exploration success. Due to our operatorship of Peregrino, we have built a competent organization that will be important for developing our coming projects and putting them into production,” continues Opedal.

In addition to expecting significant growth in production Equinor in Brazil also has an ambition to further explore for growth within renewable energy and new natural gas value chains.

Globally competitive exploration acreage
Over the last year Equinor has actively participated in new offshore licensing rounds, gaining access to significant acreage across the Santos and Campos basins.

“We are excited about the exploration portfolio in Brazil. We have been very successful in recent bidding rounds,” says Tim Dodson, executive vice president for Exploration in Equinor.

“Our current acreage position is the result of long-term thinking and hard work from our organisations in Brazil and Norway to find the right prospects. There is always uncertainty in exploration, but this is a proven and prolific oil province with many large discoveries the last decade. Over the next two years we expect to drill up to five high impact wells in the Campos and Santos basins, with potential comparable to some of the giants that shaped the Norwegian Continental Shelf in the 1970 and 1980s,” says Dodson.

Equinor is currently drilling the Guanxuma well in the BM-S-8 licence. This has been declared as an oil discovery by Brazilian regulator ANP. Good quality oil has been discovered in a carbonate reservoir. However, uncertainties remain over reservoir properties, and more work is needed to clarify the discovery potential.

Equinor assets in Brazil:

Asset

Location

Interest

Status

Peregrino field

Campos Basin

60% (operator)

Production

Peregrino Phase II

Campos Basin

60% (operator)

Development

Roncador field

Campos Basin

25%

Production

Block BM-C-33 including the
Pão de Açúcar discovery

Campos Basin

35% (operator)

Evaluation/
development

16 exploration blocks

Campos, Santos, Espírito Santo Basins

Varying

Exploration

Block BM-S-8 comprising the Carcará
discovery and exploration prospects    

Santos Basin

40% (operator)*

Appraisal

Carcará North Block

Santos Basin

40% (operator)

Exploration

Apodi solar project

Quixeré, Ceará State  

43.75%

Under
construction

* Pending the closing of transactions with partners which are subject to certain conditions, including government approvals
(interest in BM-S-8 is currently 36.5%).

Press conference

Equinor invites to a press conference for an update on Brazil at ONS Wednesday 29 August 2018

Participants: Anders Opedal, EVP Development and Production Brazil and Tim Dodson, EVP Exploration

Time: 09:00

Location: ONS press centre Hall 10

Press contact: Erik Haaland, erhaa@equinor.com , +4795421770

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