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Heerema lands Peregrino 2 jacket deal

Dutch contractor wins contract to supply key item for Statoil's WHP-C project in Brazil's Campos basin

Heerema Fabrication Group has landed the contract to build the jacket for Statoil's Peregrino 2 development in the Campos basin off Brazil.

The Dutch contractor will deliver the 9000-tonne jacket at the end of 2019, with start-up of production from the new project seen at the end of the following year.

The Heerema jacket will be 135 metres tall, with a footprint of 66 metres by 53 metres. It will include 12 piles and will be made to support a topsides weighing 25,000 tonnes.

Heerema's procurement and construction contract will see it begin fabrication at its Vlissingen facility in the Netherlands in November, with sailaway in October 2019.

The envisaged topsides will include drilling and processing facilities, power generation, utilities, living quarters and a helideck.

The jacket is one of the key contracts for the planned third wellhead platform - to be called WHP-C - to be situated on the Peregrino field, which lies in the southern and southwestern portion of the Campos basin some 85 kilometres off Rio de Janeiro state. Water depth is around 120 metres.

The Statoil-operated heavy oil field currently includes two WHPs tied back to a single floating production, storage and offloading unit. The third WHP will also be tied back to this floater. UK company Wood Group is providing detailed engineering and design for the third WHP.

The second phase of the Peregrino project will tap the Peregrino South-East structure. WHP-C will provide additional capacity for between 40,000 and 45,000 barrels per day of oil from Peregrino South-East, adding 250 million barrels of recoverable reserves.

In all, 21 development wells — 15 oil producers and six water injectors, Heerema said — will be drilled in phase two and later linked to the Peregrino FPSO some 19 kilometres away. It had previously been reported that the project would incorporate 22 development wells, with six water injectors. 

Cameron Sense, part of Schlumberger unit Cameron, was late last year reported to have secured a contract to deliver a complete drilling equipment package for WHP-C.

The Kristiansand, Norway-based supplier will supply nine modules previously built for a project that was cancelled three years ago and lying at the Nymo yard in nearby Grimstad, Upstream’s sister publication Dagens Naeringsliv reported in October.

Statoil’s project leader for Peregrino, Geir Birkeland, was quoted at the time as saying the estimated cost of Peregrino 2 was now at around $3 billion following a 30% cut in the investment budget, while the break-even oil price had been reduced from $70 to between $40 and $45 a barrel.

The drilling modules, with a combined weight of 5900 tonnes, were originally built for Brazilian player OSX before it went bankrupt, resulting in the contract being suspended.

They will now be modified by Cameron for the Peregrino 2 facility under the engineering, procurement and construction contract with Statoil, and are due for installation at the field in 2019.

Upstream reported in October that Statoil had changed tack at the existing producing portion of the Peregrino field following a failed attempt to unlock hydrocarbon reserves in the structure three years ago.

In early 2014, Statoil drilled the Juxia wildcat targeting sandstone reservoirs of the Macae formation to explore the additional potential of the highly-viscous 14 degrees API field.

The campaign lasted only two weeks in 95 metres of water with the Noble semi-submersible rig Noble Max Smith, and Statoil hit a duster at final depths of 1675 metres.

The company then decided to temporarily suspend work in the northern section, shifting focus to Peregrino South-East, the second development phase at Peregrino that is expected to produce first oil by December 2020.

Upstream reported that Statoil is now preparing another exploration effort in the north of Peregrino, initially with studies, which may later evolve to 3D seismic and, eventually, new drilling.

About five and a half years after it started output, Peregrino is said to be producing almost as much water as oil.

The Peregrino FPSO has a liquids capacity of 350,000 bpd, including 100,000 bpd for oil and 250,000 bpd for water. Due to the nature of the reservoir, intensive drilling is required at Peregrino, as oil production wells typically peak very fast.

Statoil operates Peregrino with a 60% stake and is partnered by Chinese player Sinochem holding the remaining 40%.