ExxonMobil is preparing to spud its first well in almost a decade in the Brazilian pre-salt, with the Seadrill-owned West Saturn now in location on Block C-M-789 in the Campos basin.

The targeted prospect is called Opal, and the wildcat will seek to prove the potential of a block that attracted the biggest signature bonus in Brazil’s successful 2018 licensing round for exploration and production concessions.

ExxonMobil and Qatari partner QPI paid a bonus of roughly 2.8 billion reais, worth about $849 million at exchange rates prevailing at that time.

Environmental permits were issued by the Brazilian environmental agency in late December and the rig was moved to the location early this week.

ExxonMobil is using a shore base in Niteroi, Rio de Janeiro state, for the operation. The base is owned and operated by Brazilian company Nitshore.

Tackling Titan

Once Opal has been concluded, ExxonMobil is expected to move on to drill the Titan prospect in the Santos basin, likely in the second half of the year.

Titan is located in a wider area called Tita, acquired by ExxonMobil and QPI in Brazil’s fifth bid round for pre-salt production-sharing contracts, also held in 2018.

Use of the West Saturn for further wells in ExxonMobil’s extensive Brazilian exploration portfolio will depend on whether the supermajor decides to exercise options to extend the rig charter to cover contingent wells.

Hoping for better luck

ExxonMobil has also outlined plans to spud at least one exploration well at the deep-water section of the Sergipe-Alagoas basin in the second half of this year.

Other operators, including Shell, are waiting in the wings should the West Saturn become available sooner than expected.

ExxonMobil was an early player in the Brazilian pre-salt, but expensive failures on a mega-structure identified on the former BM-S-22 served as a deterrent.

The company made a decisive move back into the country during a 2017-2019 licensing push, and currently operates on 17 blocks.

Exploration

Rare gem: ExxonMobil poised to spud landmark Opal pre-salt wildcat offshore Brazil