• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 13 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days Does Toyota Know Something That We Don’t?
  • 1 day America should go after China but it should be done in a wise way.
  • 7 days World could get rid of Putin and Russia but nobody is bold enough
  • 9 days China is using Chinese Names of Cities on their Border with Russia.
  • 10 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 10 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 10 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 9 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 19 hours How Far Have We Really Gotten With Alternative Energy
  • 10 days Putin and Xi Bet on the Global South
  • 10 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 11 days United States LNG Exports Reach Third Place
  • 11 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Houthi Red Sea Attacks Are Boon for Pirates as Ships Reroute

Houthi Red Sea Attacks Are Boon for Pirates as Ships Reroute

It’s unlikely that surging piracy…

U.S. Oil Drilling Sees 6-Rig Gain

U.S. Oil Drilling Sees 6-Rig Gain

The total number of active…

$8B Investment In Brazil Could Unlock 5 Billion Barrels Of Oil

Decommissioning costs for Brazil’s mature, offshore Campos basin could come it at a whopping US$8 billion through 2025, but according to Wood Mackenzie, investing that same amount instead in redevelopment could significantly boost production by unlocking billions of barrels of oil.

The energy consultancy estimates in a new report that US$8 billion in decommissioning costs are expected in the Campos basin between 2018 and 2025, but an equal investment in development could increase the basin’s oil production by 230,000 barrels of oil equivalent (boepd) per day in the same time period.

“…Investing the US$8 billion in the redevelopment of these mature fields could extend the life of these fields and delay decommissioning,” says Woodmac, which has explored the redevelopment plans for the Roncador, Marlim, and Polvo fields.

If recovery factors are increased to the level of international analogues, 5 billion barrels of oil to the basin reserves could be unlocked, the consultancy said.

The US$8 billion proposed for the decommissioning of these mature fields could be invested and postpone 60 percent of decommissioning costs to beyond 2030, generating extra royalties and jobs, the author of the Wood Mackenzie report, Luiz Hayum, analyst in the Upstream Research team for Latin America, says.

Extending the life of the mature fields at Campos could add US$3 billion to royalty payments to the Brazilian government, according to the report’s details carried by Reuters.

Related: Saudi King Stepped In To Call Off Aramco IPO

Brazil’s state-held oil firm Petrobras, which invests very little in the Campos basin, is looking to attract international investment to revive production at mature fields while it focuses on the new promising offshore area in Brazil—the pre-salt layer.

Earlier this year, Norway’s Equinor completed the acquisition of a 25-percent non-operated interest in the Roncador oilfield in the Campos basin for US$2 billion in cash and contingent payments of up to US$550 million related to investments in projects to increase recovery from the field. Petrobras retains operatorship of Roncador and a 75-percent interest in the third-largest producing field in Brazil.

Under the deal, Petrobras and Equinor will aim to increase Roncador’s recovery factor by five percentage points, boosting the total remaining recoverable volumes from 1 billion boe to more than 1.5 billion boe.

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News