A consortium led by Norway’s Equinor ASA has sanctioned development of an offshore natural gas and oil project targeting Brazil’s pre-salt layer, with plans to process about 500 MMcf/d of gas.
Start-up of the BM-C-33 project in the Santos Basin is slated for 2028, Equinor said Monday, with investment expected to total about $9 billion.
The project comprises three separate discoveries containing recoverable gas and oil/condensate reserves estimated at more than 1 million boe. Equinor holds a 35% operating interest in the project, with working interests also held by Repsol Sinopec Brasil (35%) and Brazilian state oil company Petróleo Brasileiro SA, aka Petrobras (30%).
“The final investment decision of BM-C-33 is an important milestone for the partners and for Equinor,” said the company’s Geir Tungesvik, executive vice president for projects, drilling and procurement. “Together with partners and suppliers we have developed a significant project which will provide Brazil with energy to meet its growing energy demands and create value for owners and society, contributing to local industrial development. Brazil is one of Equinor’s core areas and the investment in BM-C-33 emphasizes the strategic importance of our Brazilian portfolio.”
Plans are to deploy a floating production storage and offloading unit (FPSO) capable of processing gas, oil and condensate without a need for further onshore processing, the 67% state-owned firm said.
The FPSO’s gas sendout capacity is 16 million m3 (595 MMcf)/d, with plans to send to shore about 14 million m3 (494 MMcf)/d on average, according to Equinor management.
“BM-C-33 is one of the main projects in the country to bring new supplies of domestic gas, being a key contributor to the further development of the Brazilian gas market,” said Equinor’s Veronica Coehlho, country manager for Brazil. Gas processed from the project “could represent 15% of the total Brazilian gas demand at start-up. Its development will also contribute to the energy security and economic development, enabling a lot of new job opportunities locally,” Coehlho added.
Brazil has become a substantial importer of liquefied natural gas in recent years, particularly in dry periods that cause hydroelectric output to fall.
The partnership said on Wednesday that it had awarded a contract for subsea umbilicals, risers and flowlines at BM-C-33 to TechnipFMC, and a sales and purchase agreement for delivery of the FPSO to MODEC Inc.
“MODEC was also awarded the FPSO contract for our Bacalhau project, and we look forward to draw from experiences between the two projects, to ensure safe and efficient execution of the developments,” said Tungesvik. “We also have a long history of collaboration with TechnipFMC and we are pleased to continue our good collaboration on another major project development…”
BM-C-33 would be Equinor’s second FPSO in Brazil using combined-cycle gas turbines, “significantly reducing carbon emissions during operations,” the company said.
“The technology will also be applied in Bacalhau, in the Santos Basin, and it combines a gas turbine with a steam turbine to take advantage of the excess heat that would otherwise be lost. By implementing this technology, the average CO2 intensity of BM-C-33 over its lifetime will be lower than 6 kilos per barrel of oil equivalent.”
The companies plan to transport gas from the FPSO through a 200-kilometer (124-mile) pipeline to the Cabiúnas Terminal in Rio de Janeiro state, before injecting the gas into Brazil’s national pipeline grid.
“Liquids are planned to be offloaded by shuttle tankers,” Equinor said. The FPSO’s oil and condensate processing capacity is about 126,000 b/d.
Repsol Sinopec made the BM-C-33 discoveries in 2010, with Equinor becoming the operator in 2016.
Located about 124 miles offshore, the discoveries are in water depths up to 2,900 meters, or about 9,500 feet.
