Galp, Equinor (operator), ExxonMobil and Pré-sal Petróleo SA (PPSA), partners in the development of the BM-S-8 and North Carcará offshore licenses, in Brazil’s pre-salt Santos’ basin, started production from the Bacalhau FPSO, one of the largest units operating in the world, with a production capacity of 220,000 barrels per day.
In a field with recoverable reserves of more than 1 bn barrels, Bacalhau will contribute about 40,000 barrels of oil per day to Galp’s output once the unit ramps-up to plateau, an increase of more than 30% over Galp’s current production, which makes it Brazil’s fifth-largest oil and gas producer.
“The start of production at the Bacalhau project reflects the commitment, trust, and ambition shared by several teams and partners since the signing of the concession agreement 25 years ago,” said Nuno Bastos, Galp’s Executive Vice President for Upstream. “Our teams are now fully focused on safely and efficiently bringing the unit to full production capacity in the shortest possible timeframe, maximising the value of the project,” he added.
While Equinor is the leading partner in the Bacalhau project, with 40% (operator), along with ExxonMobil, who also owns 40%, Galp is the only partner that signed the original BM-S-8 concession contract, 25 years ago. Galp holds a 20% stake in the project through Petrogal Brasil, a joint venture with Sinopec (Galp 70% | Sinopec 30%). PPSA (Government Company, PSA Manager) is also a partner.
“This project underscores Galp’s long-standing commitment and confidence in Brazil’s geological potential,” said Paula Pereira da Silva, CEO of Galp Brasil. “Bacalhau also showcases our determination in delivering high-value projects for the company, for its shareholders, and for Brazil,” Paula added.
The unit, Galp’s 13th deployed in the Brazilian pre-salt since 2010, features an innovative Combined Cycle Gas Turbine (CCGT) system supporting a CO2 emissions intensity close to 9 kg per barrel, about half the industry average. The vessel, 370 meters long and 64 meters wide, is located 185 km off the coast of Ilhabela (São Paulo), at a water depth of over 2,000 meters.
Bacalhau will also deliver long-term benefits to Brazil´s economy, adding approximately 50,000 jobs over its 30-year lifetime, of which 3,000 jobs were created during the development phase. About 60% of the subsea scope of the first phase is being handled by Brazilian contractors, contributing to build local capabilities and to strengthen the local industry supply chain.