Equinor and BM-C-33 partners declare $9b development in Campos Basin
Equinor, on behalf of the BM-C-33 consortium, has officially submitted the Declarations of Commerciality and Development Plans for two significant areas in Brazil’s Campos Basin to the Agência Nacional de Petróleo, Gás Natural e Biocombustíveis (ANP). This step forward signifies an investment of about $9 billion.
Partnerships and Location
Partnering with Equinor in the consortium are Repsol Sinopec Brasil and Petrobras. The concession lies roughly 200 kilometers from Rio de Janeiro, with water depths reaching up to 2900 meters. The region boasts recoverable natural gas and oil/condensate volumes surpassing one billion barrels of oil equivalent.
Names and Regulatory Approval
Two proposed names for these areas are Raia Manta and Raia Pintada. Both the proposed names and Development Plans await regulatory endorsement.
Key Insights from Equinor’s Leadership
Trond Bokn, Senior Vice President for Project Development at Equinor, remarked, “Raia Manta and Raia Pintada align strategically with Equinor’s longstanding goals in Brazil. Collaborating closely with our allies, we’ll employ specialized skills for the secure and efficient realization of these developments.”
Equinor’s Campos Basin Plans Could Supply 15% of Brazil’s Gas Demand. Image courtesy of Equinor ASA.
Development and Capacity Details
The selected production concept involves one floating production storage and offloading unit (FPSO) designed to process gas and oil/condensate, meeting sales criteria sans additional onshore handling. This FPSO has a daily production capability of 16 million cubic meters of gas, projecting an average export of 14 million cubic meters daily.
Local Impact and Job Creation
Emphasizing the developments’ substantial nature, they stand as pillars for the Brazilian gas market’s future growth. Collectively, their establishment and operation could potentially offer up to 50,000 local job opportunities throughout their life span, thanks to diverse supply chain contracts. Equinor’s Country Manager in Brazil, Veronica Coelho, pointed out, “These developments have the potential to address 15% of Brazil’s entire gas consumption upon production. This could be instrumental for Brazil’s energy stability, economic progression, and spur significant job opportunities locally.”
First of its Kind
A notable aspect is that Raia Manta and Raia Pintada’s development marks Brazil’s maiden venture in treating gas offshore, directly connecting to the national grid without further onshore processing. The gas is projected to be transported via a 200-kilometer offshore gas pipeline from the FPSO to Cabiúnas, located in the city of Macaé, Rio de Janeiro. Concurrently, the liquids are planned for shuttle tanker offloading.
Environmental Considerations
The estimated lifetime average CO2 intensity for the ventures is under 6 kilograms per barrel of oil equivalent, attributing to the combined cycle gas turbines on the FPSO. This design uniquely pairs a gas turbine with a steam turbine, optimizing excess heat that would otherwise dissipate.
Quick Facts
- Equinor holds a 35% stake, with Repsol Sinopec Brasil owning 35% and Petrobras holding 30%.
- Repsol Sinopec initiated discoveries in 2010.
- Equinor took over as the operator in 2016.
- Both Raia Manta and Raia Pintada are positioned in Brazil’s Campos Basin pre-salt.
- The FPSO can handle approximately 126,000 bpd.
- Operations are anticipated to commence by 2028.
With this move, Equinor continues to solidify its presence and influence in Brazil’s growing energy market.