Statoil is working towards a potential final investment decision towards the end of this year covering the phase two development of its Peregrino heavy oil field in Brazil.
Emil Volckmar, Statoil’s project manager for the phase 2 development told an Intsok-organised seminar at ONS 2014 that if all goes well the project could start producing oil for the Norwegian ooperator late in 2019 or early in 2020.
Currently, Volckmar said, Peregrino is producing about 100,000 barrels per day via the first-phase project that involves oil from two wellhead platforms being processed on the development’s floating production, storage and offloading vessel.
The FPSO is now owned by Statoil and operated for it by floater giant BW Offshore and Volckmar said that its capacity will be increased slightly in the years ahead.
The Peregrino phase 2 development will centre on the installation of a new wellhead platform with 60,000 bpd of oil capacity that will feed that output through to the FPSO where it will be processed.
The new project will make use of capacity that becomes available on the FPSO as output from the first phase development starts to decline.
Volckmar said reserves in the range of 150 million to 250 million barrels of oil are estimated to be available for the second-phase development, adding that the tally will “probably be towards the high side” of that range.
The wellhead platform to access these second-phase reserves will include a 16,000-tonne deck atop a 9000-tonne jacket with 25 well slots, 120-person living quarters and power facilities.
Tendering for construction of the platform and associated facilities has not yet been started by Statoil. However, Volckmar said that process will take place in time for contract awards in late 2015 or early 2016.
In the meantime, Statoil will “very soon” finalise its contracting strategy, including whether to pursue an engineering, procurement and construction approach or separate out engineering and fabrication of the platform.
The subsea pipeline and riser packages are likely to be contracted via an EPC approach, he added.
Peregrino lies 95 kilometres off the Brazilian coast in about 100 metres of water in a large area that was formerly known as blocks BM-C-7 and BM-C-47. Statoil operates the field with a 60% stake and Chinese player Sinochem holds the remaining 40%.