Brazilian independent PetroRio expects to start production from the Wahoo pre-salt discovery in the prolific Campos basin off Brazil in 2024.

PetroRio last week announced the purchase of 35.7% and 60% stakes from UK supermajor BP in blocks BM-C-30 and BM-C-32, respectively, taking over operatorship of the Wahoo and Itaipu pre-salt finds.

According to a more detailed timeline presented by the company in a conference call with investors this week, PetroRio predicts first oil from Wahoo will flow as early as 2024.

Countdown to FID

Chief executive Roberto Monteiro said PetroRio will begin working on a new development plan for Wahoo to be presented to the Brazilian National Petroleum Agency (ANP) next year, even before receiving the green light to conclude the acquisition.

“By the end of 2021, we expect to have the Wahoo plan sanctioned to declare its commerciality. That is when we also expect to have a new reserves certification to make a final investment decision,” Monteiro explained.

PetroRio intends in early 2022 to start the contracting of services and a drilling rig to carry out a development campaign in Wahoo, initially consisting of four oil-producing wells.

“Drilling in Wahoo is expected to begin in late 2022 or early 2023, so we can achieve first oil in 2024,” Monteiro added.

The Wahoo base project covers an extra two water-injection wells that may be drilled in 2026 in case there is not enough aquifer pressure in the reservoir.

Frade tie-back plan

Output from Wahoo will flow via a 35-kilometre tie-back to the Frade floating production, storage and offloading vessel, which is already on stream in the PetroRio-operated Frade field.

According to Monteiro, each well from Wahoo is expected to achieve initial production of more than 10,000 barrels per day of oil, the same rate as an extended well test conducted in the maiden find a decade ago.

PetroRio estimates a total capital expenditure of $800 million for Wahoo, including $300 million for the tie-back, $360 million for well drilling, $100 million for subsea equipment and $40 million for adjustments in the Frade FPSO and other items.

Streamlining

Monteiro said the company will now work on trying to streamline the project further, potentially reducing spending, to make it even more robust.

In parallel to the Wahoo development, PetroRio intends to proceed with the Frade revitalisation project, which calls for an infill drilling programme divided into two phases.

Chief operating officer Francilmar Fernandes said the idea is to drill a few wells at Frade before proceeding with the Wahoo campaign, eventually with the same rig, and capturing synergies between the two projects.

Frade produced about 17,500 bpd from 10 wells in October, according to the latest data from the ANP.

“The Frade FPSO has a nominal capacity of 100,000 bpd, so there is plenty of room to accommodate incremental production from Frade and Wahoo,” Fernandes said.

Alternatives up its sleeve

PetroRio is also analysing alternatives in case its Wahoo partners — French supermajor Total and Indian joint venture IBV Brasil — decide not to proceed with investments.

Monteiro said: “We would like to continue with our partners to share risks, but one of the alternatives is to carry all investments and benefit from the entire production. This can be done through the sole risk contractual clause or even acquire the remaining interest at Wahoo.”

In case PetroRio decides to move forward alone, the company suggested it would be inclined to increase its capital through a share offer to raise cash.

The Wahoo development does not include the southern portion of the accumulation due to the lack of data from the area, which Monteiro said might generate upside in the future.

As for Itaipu, Monteiro highlighted the discovery does not justify a stand-alone development, and its production is tied to a potential unitisation agreement with the adjacent Parque das Baleias complex, operated by state-controlled player Petrobras.

Field Development

PetroRio targets first oil from Brazil pre-salt field in 2024