Peregrino phase 2 project : Oil and gas company Equinor has started oil production from the phase 2 development of the Peregrino oil field in the Campos Basin, offshore Brazil.

Originally scheduled to commence production in 2020, Peregrino phase 2 development faced delay following the outbreak of Covid-19. Equinor (formerly Statoil) submitted the plan of development for the expansion of the heavy oil field in 2015.

Despite the delay in the execution, Peregrino phase 2 project was completed within the originally estimated cost of $3 billion, according to Equinor.

Peregrino phase 2 project details

The Peregrino heavy oil field phase 2 is a tie-back to the existing Peregrino floating production storage and offloading (FPSO). The phase 2 development of the Peregrino oil field saw the installation of a new wellhead platform and the drilling rig — Peregrino C in a water depth of 120m.

A new pipeline was also installed as part of the Peregrino phase 2 project to transport gas to the Peregrino C platform for power generation.

Geir Tungesvik — Equinor executive vice president for projects, drilling and procurement, said: “Covid-19 has made Peregrino phase 2 a challenging project, and I want to thank everyone involved for delivering the project with excellent HSE results.”

With a stake of 60%, Equinor is the operator of the Peregrino oil field, which was brought online in 2011. Chinese state-owned firm Sinochem holds the remaining 40% stake.

The Peregrino phase 2 project was initiated to extend the lifetime of the offshore Brazilian oil field and produce an additional 250-300 million barrels of oil. It focuses on production from the Peregrino Southwest area through the drilling of 15 oil producers and six water injectors.

Al Cook — Equinor executive vice president for Exploration & Production International, commenting on the Peregrino phase 2 project, said: “The start-up of Peregrino Phase 2 is an important milestone in Equinor’s growth strategy in Brazil. This project showcases how we can bring valuable new resources onto production at the same time as investing in technology to cut carbon emissions.

“I am proud that Peregrino Phase 2 will increase field production to 110,000 barrels per day at plateau whilst halving our emissions intensity.”

  Al Cook, Brazil, Campos Basin, COVID-19, Equinor, Geir Tungesvik, Oil and gas industry news, Oil and gas news, Peregrino field, Sinochem, Statoil