Upstream in Brazil

The BM-S-11 consortium has submitted an updated PoD for the Tupi and Iracema fields to ANP. This submission includes a set of identified actions aimed at maximising the value creation from the Tupi and Iracema fields, identifying additional development projects, of low breakeven, which will increase the fields’ total recoverability.

The Tupi and Iracema fields, located in the Brazilian pre-salt of the Santos Basin, reached the production plateau of the initial development phase after the completion of the floating production storage and offloading unit (FPSO) ramp-up in the Tupi North area in 2020. During the last 10 years, these fields have surpassed the historic 2 bn boe production mark, confirming their extraordinary characteristics and the scale of the reservoir.

In October, the partners agreed on the preparation of an updated Development Plan for the Tupi and Iracema fields, in tandem with the sale of unit P-71. This plan aims to identify additional development projects resilient to low oil prices and will include evaluations for a potential field life extension request.

The ninth FPSO and the third replicant unit, P-67, started production in February in the Tupi North area. This marks the conclusion of the deployment of the production units considered under the first development phase of these top tier projects.

In March, ANP approved the Unitisation Agreement related with the Tupi accumulation and submitted by the BM-S-11 consortium. The agreement establishes the tract participation each party will hold on the unitised area. The Iracema accumulation is not subject to a unitisation process and therefore interests in the area will remain in line with the BM-S-11 consortium composition.

The partners performed an extended well test (EWT) in Tupi West and the results are expected to contribute to the extensive knowledge of the area.  

The eight FPSO and the second replicant unit, P-69, reached first oil in October in the Tupi Extreme South area.

Performance of an EWT in the Tupi West area, through a long-distance tie-back to FPSO #1

The seventh FPSO and first replicant unit started production, marking the beginning of a new stage in the BM-S-11 project.

Six out of the twelve development areas considered in block BM-S-11 were already in production.

The Tupi and Iracema projects started commercial production through the FPSO Cidade Angra dos Reis (#1), just four years after discovery.

The first development phase of the Tupi and Iracema projects was characterised by the completion of the first of the five EWTs (Extended Well Tests), proving the excellent productivity of the wells (c. 30 kbpd) and the quality of the carbonate reservoirs..

The Tupi South well was drilled and the extension of the Tupi field was confirmed, having been proven the existence of light oil with a density of 28º API.

The consortium drilled the exploration well Tupi-1 and discovered the Tupi field, today known as Tupi, one of the largest oil fields in Brazil’s pre-salt.

The exploratory activity in the area begun, with a 22,500 km² 3D seismic survey being carried out.

June

Block BM-S-11 was awarded to the consortium in the pre-salt’s second Round.

The first unit to develop the Berbigão and the western flank of Sururu, P-68, started production in November 2019.

ANP approved the Unitisation Agreement for the Atapu accumulation which became effective as from 1 September 2019. The agreement establishes that the BM-S-11A licence represents 17.03% of the unitised area (BM-S-11A, together with Transfer of Rights and open area), with Galp now holding a 1.70% interest
 

A six-month EWT in the Sururu Southwest area was performed through FPSO Cidade de São Vicente

Drilling of an appraisal well in Sururu led to the largest oil column in the Santos Basin pre-salt area, with 530 meters net oil pay.

The consortium members, along with Petrobras for the Transfer of Rights area, and PPSA, submitted to ANP three distinct unitisation agreements for the development of the Greater Iara project.

In the first quarter of 2018, the consortium initiated an EWT in the Sururu SW area, through the FPSO Cidade de S. Vincente.

The development plan for Atapu, Berbigão and Sururu was submitted.

Late 2016

Total and Petrobras signed an agreement which includes the sale of a 22.5% stake in the Iara area in block BM-S-11. The agreement provides that Petrobras remains the operator, with a 42.5% stake in the consortium.

The partners of block BM-S-11 carried out an EWT at Berbigão field, which proved a high productivity. The commerciality of the three accumulations referred to as Atapu, Berbigão and Sururu was declared.

The discovery of the Iara field was confirmed, with the drilling of the exploration well proving the existence of light oil with a density from 26 º to 30° API.

Galp and its partners have made the Final Investment Decision to develop phase one of the Bacalhau project.

The Bacalhau field is situated across two licenses, BM-S-8 and Norte de Carcará. The resource is a high-quality carbonate reservoir, containing light oil with minimal contaminants.

The 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 to date with a production capacity of 220,000 barrels per day.

The partners submitted the Plan of Development for the first phase of the Bacalhau project to ANP, as well as awarded the respective front-end engineering design (FEED) contracts.

The partners spudded Carcará East, the second well located in the Carcará North block, which was followed by a DST.

ANP approved the last pending transaction in June 2019 and the partners’ stakes became aligned between the BM-S-8 license and the Bacalhau North area, with Galp holding a 20% stake in the Greater Bacalhau.

Following the Carcará North award in 2017, the partners agreed to align the equity interests across the two blocks that together comprise the Carcará discovery, with Galp holding a 20% interest in the project, whilst Equinor, the operator, and ExxonMobil a 40% stake each.

The consortium undertook a DST in the Carcará Northwest well in block BM-S-8, which revealed excellent commercial productivity potential.

The partners spudded Carcará West in September, the first well located in the Carcará North block, which was followed by a DST.

Carcará North area, to where the Carcará discovery extends, is adjacent to BM-S-8 concession.

In October, pursuant to the ANP's 2^nd Production Sharing Bidding Round, Galp together with Statoil and ExxonMobil were awarded the Carcará North area.

The consortium offered a profit oil share of 67.12%, with additional commitments including the payment of a gross signature bonus of c.$930 m.

Additionally, in October, Galp, through Petrogal Brasil, has agreed with Statoil the acquisition of an additional 3% stake in BM-S-8.

Statoil acquired Petrobras’ operating stake of 66%. Activities in 2016 focused mainly on the analysis of the exploration and appraisal campaign carried out in the previous year, in order to further the knowledge of the reservoir’s characteristics and to better define the development plan for the area. The studies for defining the concept of the gas exportation system were continued.

Two wells were drilled and a Drill Stem Test (DST) was carried out, which showed excellent productivity levels of the reservoir, as well as its extension to north and west of the Carcará discovery.

A new exploration well was drilled, resulting in the Carcará discovery, with one of the largest oil columns in the pre-salt ever discovered.

The consortium made a discovery in the Bem-te-vi prospect. However, this accumulation was later abandoned, as it was considered to be non-commercial.

June 

Block BM-S-8 was awarded to the consortium in the pre-salt’s second Round.

Production of the unitised Sépia field started on the 23^rd of August.

Pursuant to the results of the 2nd Bidding Round for the Transfer of Rights surplus, in Brazil, Petrobras, TotalEnergies, Petronas and QP acquired the exploration and production rights of the volumes exceeding those of the Transfer of Rights in the Sépia field.

In August 2020, the drill stem test (DST) of the well Apollonia, was successfully completed, representing an important milestone for the progress of the Júpiter discovery. Given the high condensate to gas ratio (CGR) and the high CO2 content, this DST is considered a major technical advance.

Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) approved the Unitisation Agreements (UA) related with the Sépia accumulation. The Sépia discovery extends towards the Sépia East area, within the BM-S-24 licence. The agreement establishes that the licence represents 12.07% of the unitised area (BM-S-24 + ToR), with Galp now holding a 2.414% interest through its 20% stake in BM-S-24.

During 2018, the Sépia unitisation agreement was approved by BM-S-24 partners and submitted to ANP. Following the submission, the consortium submitted to ANP an updated PoD.

Late 2016

Negotiation of the unitisation processes between the consortium of block BM-S-24 and Petrobras, regarding the Transfer-of-Rights area.

Júpiter

ANP approved the request for a five-year extension of the exploratory period for the Júpiter area. This extension will allow the partners of block BM-S-24 to continue the field’s technological development studies.

The studies are mainly focused on the reservoir, flow assurance, infrastructure for field development, CO2 transport, subsea separation and the different types of metallurgy to be used in the wells’ completions.

Sépia

The declaration of commerciality for the Sépia East area was submitted to ANP.

Júpiter

The discovery well was drilled in the Júpiter area, having been proven the existence of a large reserve of gas and condensates with a high CO₂ content.

Sépia

During the exploratory activity of the Sépia field (Transfer-of-Rights) it was noted the extension of the Sépia field’s oil accumulation into the Sépia East area (block BM-S-24). 2015 The declaration of commerciality for the Sépia East area was submitted to ANP. 2020 Expected start of production of the unitised Sépia field.

Block BM-S-24 was awarded to the consortium in the pre-salt’s third round.