Bermuda-headquartered BW Energy has announced final investment decision (FID) for the US$107mn Golfinho Boost project, which aims to increase uptime, reduce operating expenses and add around 3,000 bpd of incremental oil production from 2027 at the Golfinho field, offshore Brazil.
The project includes a number of measures aimed at boosting production efficiency and increasing recoverable reserves by approximately 12mn barrels. They include upgrades to the subsea boosting system by replacing gas lift with Electrical Submersible Pumps (ESPs) at the seabed, reopening of shut-in wells, umbilicals replacement, improved field logistics and FPSO capacity enhancements.
This follows the extension of BW Energy’s Golfinho licence by Brazilian oil and gas regulator ANP. The production phase under the Golfinho concession contract has been extended to 2042 from 2031 previously, following ANP’s approval of the company’s field development plan in November 2024.
“BW Energy continues to strengthen its position in Brazil through targeted measures on the Golfinho field to increase production, uptime and operational independence. The planned low-risk enhancements to field assets and operations offer very attractive returns and are expected to help unlock material long-term value creation for the company and its stakeholders,” said Carl K. Arnet, CEO of BW Energy.
The Golfinho field, which has been producing since 2007, is in the Espírito Santo Basin with water depths between 800 and 1,700 metres. BW Energy is the operator with 100% working interest in the Golfinho licence following the August 2023 acquisition of the Golfinho and Camarupim Clusters. Hydrocarbons are produced to the FPSO Cidade de Vitória, which BW Energy acquired and has operated since November 2023.
Hanwha Drilling's new deepwater drillship under Hanwha Ocean's banner is now known as the Tidal Action, following its naming ceremony in South Korea.
Designed to reach drilling depths of up to 12,000 m in waters running 3,600 m deep, the Tidal Action is gearing up to serve Constellation Oil Services and Petrobras offshore Brazil, where drilling operations are set to start before the year ends. The dynamically positioned vessel can support 20,000-psi blowout preventers (BOPs). It is equipped with DP3-certified thrusters, generous deck space, and load capacities, along with dual derricks to support heavy drilling activity and efficiency.
Considering its "history of operational performance, quality people and excellent relationships with its customers", Hanwha Drilling has partnerered with Constellation who will be managing the Tidal Action drillship for Petrobras. Hanwha Drilling acknowledges the contract as a milestone for the company and an ideal fit for Tidal Action, given the scope of work and timing.
Besides Tidal Action, the Laguna Star drillship which belongs to Constellation's fleet will also be deployed for Petrobras. Ready for operation following necessary adjustments and inspection, the Laguna Star vessel will be capable of drilling in water depths of up to 10,000 feet, with a drilling depth capacity of up to 40,000 feet.
The 2012-built sixth-generation Laguna Star ultra-deepwater DP drillship was constructed at Samsung Heavy Industries shipyard in South Korea.
To know more about the well lifecycle scene in Latin America, click here.
Constellation Oil Services Holiday (Constellation) has won a new contract with Petrobras for the deployment of a jackup drilling rig for a P&A campaign in the shallow waters of four Brazilian basins.
The agreement has a total value of US$170mn for P&A work in the Sergipe, Alagoas, Ceará and Potiguar basins being carried out by the Admarine 51 rig. The rig will be run and operated by Constellation, which will have up to 210 days to mobilise the rig from its current location in Bahrain to the Brazilian waters, where it will remain for 1,143 days (over three years) with the option to extend up to 472 days.
Rodrigo Ribeiro, CEO of Constellation, said, “We are excited to announce the signing of this new contract, marking our strategic return to shallow water operations and our entry into a promising market segment. This project is the second third-party owned asset to be operated by Constellation, aligning with our core competencies as Drilling Contractors and playing a vital role in Petrobras' ambitious decommissioning plans. The initiative will progress in stages, commencing with the P&A of a significant number of wells currently connected to these fixed platforms.”
Shell Brasil Petroleo Ltd has reached a final investment decision (FID) with Modec Inc for a floating production storage and offloading (FPSO) vessel to be deployed at the Gato do Mato oil field, offshore Brazil.
The partners have a purchase and sales agreement that allows Modec to cover operations and maintenance of the FPSO for a period of 20 years with Shell. This follows the front-end engineering design (FEED) contract in March 2024 that has already been delivered.
The new agreement makes Modec responsible for the design of the hull and all related topsides facilities for the FPSO before mooring it with the help of a Sofec Spread Mooring system. Once moored at a water depth of approximately 2,000m, around 200km South of Rio de Janeiro, FPSO Gato do Mato will be capable of producing 120,000 barrels of oil per day (bopd), as well as associated gas and water. The produced stabilized crude will be stored in the FPSO tanks, and the oil will be offloaded to shuttle tankers to go to market.
Modec's 19th project in Brazil and the second for Shell, the FPSO Gato do Mato will feature a new built, custom-made next generation hull, designed on the basis of a 25-year shelf life.
The FPSO Gato do Mato will be the 19th FPSO to be developed by MODEC for Brazil. It will be the second unit to be delivered directly to Shell by MODEC for operation in Brazil.
The FPSO agreement comes soon after Shell took the FID for Gato do Mato, a deep-water project in the pre-salt area of the Santos Basin, offshore Brazil.
The Gato do Mato Consortium includes Shell (operator with a 50% stake), Ecopetrol (30%), TotalEnergies (20%) and Pré-Sal Petróleo S.A. (PPSA) acting as the manager of the production sharing contract (PSC). It is said that the estimated recoverable resource volumes from the site can reach upto 370 mn barrels.
“Gato do Mato is an example of our ongoing investment in increasingly efficient projects,” said Zoe Yujnovich, Shell’s Integrated Gas and Upstream Director. “The project contributes to maintaining stable liquids production from our advantaged Upstream business, and expands our leadership as the largest foreign producer in Brazil as we continue working to provide for the world’s energy needs well into the future.”
The consortium anticipates that the Gato do Mato field will commence operations in 2029.
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Baker Hughes has announced a major multi-year contract with Petrobras for fully-integrated completions systems.
The award followed an open tender and will leverage Baker Hughes’ innovative technology portfolio and extensive experience in Brazil to optimise production across multiple deepwater fields.
A range of technologies have been specifically tailored to meet the needs of Petrobras’ offshore developments. The completions technologies will be combined with conventional upper and lower completions solutions to provide remote operations capabilities and multizone control which limits water and gas breakthroughs, reducing the risk of costly interventions.
Amerino Gatti, Executive Vice President, Oilfield Services & Equipment at Baker Hughes, said, ““Deepwater, high pressure wells require an unmatched level of reliability, and our completion technologies have proven themselves in these harsh environments […] Through continual innovation, improvement and testing, and in close collaboration with Petrobras, the Baker Hughes team has pioneered new ways to help develop Brazil’s natural resources safely and efficiently for decades to come.”
Through the agreement Petrobras will utilise Baker Hughes’ new SureCONTROL Premium interval control valve (ICV), which provides enhanced reliability in the high flowrates of Petrobras’ offshore fields. The technology allows operators to respond remotely to evolving well conditions across multiple zones in real time.
Petrobras will deploy a number of Baker Hughes’ technologies, including the SureSENS QPT ELITE downhole gauges, SureSENS B-Annulus monitoring system, SureTREAT chemical injection system, Sure-Set flow control system, Orbit Premium barrier valves, a gas lift system, REACH subsurface safety valves, DeepShield subsurface safety valves, Premier packers, screens and gravel pack system.
Delivery of the completions technologies will begin in late 2025.
Energy technology company Baker Hughes has announced a joint technology development programme with Petrobras to provide a solution for stress corrosion cracking in flexible pipelines.
The agreement encompasses development and testing, as well as a purchase option for the next-gen flexible pipes, which will have an extended service life of 30 years in high CO2 environments. The collaborative effort between both companies will be primarily executed in Baker Hughes’ Rio de Janeiro Energy Technology Innovation Center and nearby pipe systems manufacturing plant.
Stress corrosion cracking due to CO2 (SCC-CO2) was identified in 2016 and has an effect on flexible pipes in pre-salt fields, which have a high concentration of naturally occurring CO2. If water penetrates a pipe’s annulus area, the corrosion to steel reinforcement layers can weaken structural integrity. This issue is particularly apparent in Brazil’s pre-salt fields, where Petrobras is reinjecting CO2 from its production operations into wells to enhance oil recovery.
Amerino Gatti, Executive Vice President, Oilfield Services & Equipment at Baker Hughes, said, “Baker Hughes has led the way in addressing SCC-CO2, and we will bring that expertise and experience to bear in developing the definitive solution to this critical industry challenge. By deploying flexible pipe systems that last for decades, Petrobras can more efficiently unlock the vital natural resources that power the region, while also safely returning CO2 deep underground.”
Until now, operators in high-CO2 environments have relied on solutions that mitigate the impact of SCC-CO2 while limiting the service life of risers and flowlines. Baker Hughes’ flexible pipe systems and advanced monitoring technologies have proven effective at minimising this impact and the company is a major supplier of flexible pipelines to Petrobras.
First oil from the Mero Field in the Santos Basin is expected in the second half of the year with the arrival of SBM Offshore's Alexandre de Gusmao floating production storage and offloading (FPSO) vessel.
This follows the recent arrival of FPSO Almirante Tamandare, which began production on 15 February, as a part of Petrobras fleet.
Alexandre de Gusmao is SBM Offshore's ninth FPSO vessel in Brazilian waters. It boasts a production capacity of 180,000 barrels of oil per day and 12 million cubic meters of gas per day.
SBM Offshore deals with FPSO vessels with production capacities ranging from 150,000 bpod to 250,000 bpod. It can convert oil tankers or very large crude carriers (VLCCs) into FPSOs. It has overall 15 units, deployed mainly in the Latin America region other than in West Africa. Its Fast4Ward offering focuses on risk mitigation and quality enhancement with the help of digital solutions.
"This achievement is a testament to the hard work and dedication of our teams, who have worked tirelessly to bring this project to fruition. The addition of this vessel to our fleet marks a significant milestone in our operations and reinforces our commitment to excellence and innovation in the sector. Welcome to the fleet, FPSO Alexandre de Gusmao," said Bruno Giusti, Brazil Operations Director at SBM Offshore.
Through inspection maintenance and repair, the company has covered services such as the designing, supply, installation, operation and life extension of the FPSO vessels.
To know more about Latin America's offshore well intervention scene, click here.
Production at Brazil’s Mero field is set to ramp up with the arrival of SBM Offshore’s FPSO Alexandre de Gusmão.
The FPSO, which has a production capacity of 180,000 barrels of oil (BOPD) per day and gas compression of 12mn cubic metres per day, left China for Brazil in December. It is scheduled to spend 22.5 years in the country according to the terms of a lease and operation contract with Petrobras signed in 2021. Alexandre de Gusmão will be the fifth FPSO unit operating at Mero, joining Pioneiro de Libra, Guanabara, Sepetiba, and Marechal Duque de Caxias. The addition of the new FPSO is expected to boost the field’s production capacity to 770,000 bopd.
The Mero field, located in ultra-deep waters (2,100 m) approximately 190 km off the coast of Rio de Janeiro in the pre-salt layer of the Santos Basin, reached the milestone of 500,000 barrels of oil produced daily on 28 February. Discovered in 2010, Mero is governed by the Libra Production Sharing Contract, operated by Petrobras (38.6%), in partnership with Shell Brasil (19.3%), TotalEnergies (19.3%), CNOOC (9.65%), CNPC (9.65%) and Pré-Sal Petróleo SA (PPSA) (3.5%), which, in addition to managing the contract, acts as the Union’s representative in the non-contracted area (3.5%). The pre-salt currently accounts for 81% of Petrobras’ total production.
"Since extracting its first oil, Mero’s production has been marked by technological advances, innovation and production records. The 500,000 barrels per day mark is the result of the work of several areas and the new technologies used in our projects and in our day-to-day operations. The company remains committed to operating sustainably, optimising production in existing fields and, in doing so, helping to provide the energy needed for the country’s development," said Magda Chambriard, CEO of Petrobras.
"Mero is the third largest field in Brazil and, in terms of volume of oil in place and production, is behind only Tupi and Búzios, also located in the Santos Basin pre-salt. And production will increase even further with the completion of the ramp-up of the FPSO Marechal Duque de Caxias and the start-up of the FPSO Alexandre de Gusmão. We have invested heavily in technological development, which allows us to increase productivity while minimising greenhouse gas emissions, with safety and integrity of the facilities," said Sylvia Anjos, Petrobras’ Exploration and Production Director.
A technical hiccup in the Bauna floating production storage and offloading (FPSO) vessel deployed in the Santos Basin offshore Brazil has cost exploration and production company, Karoon Energy, about 10 days of production shut in, resulting in 4% lower yeild in the fourth quarter of 2024, when compared to the previous quarter.
This was triggered by the failure of two of the 16 FPSO mooring anchor chains, which is currently being addressed by Karoon and the FPSO operator, Altera & Ocyan (A&O), as the team tries to figure out the root cause behind the failure and identify ways to mitigate the risks of recurrence. Karoon is considering acquiring the FPSO for a smoother monitoring of the vessel, and is in talks with A&O to gauge the feasability of the plan.
"Longer term, given the significance of the FPSO to our operations, we see measurable operational and economic advantages in having direct control over the vessel. The company is in negotiations to acquire the FPSO from the current owner and operator, A&O, subject to finalising terms. Further details will be provided if and when a binding agreement is reached," said Julian Fowles, the Chief Executive Officer and Managing Director of Karoon.
Achieving around 95% FPSO efficiency has also been a roadblock for Karoon as it remained low by atleast a 10% for 2024. To boost performance reliability, Karoon will soon be initiating a flotel-supported maintenance campaign on the vessel following the acquisition of relevant regulatory approvals. This floating hotel moored by the FPSO has been contracted to accommodate extra
manpower for a planned maintenance programme to methodically eliminate maintenance backlog so that equipment redundancy on the FPSO can be attained. The entire campaign might span across a period of two months, requiring the FPSO to remain non operational for at least 30 days. The company is expecting the Bauna FPSO to attain monthly efficiency of 88-92% (excluding shutdowns) in this year.
"While the Bauna Project production is starting to benefit from the work completed to clear the most production-critical maintenance issues, FPSO efficiency in CY24 was 84.5%, well below our long term expectations of 90-95%. A key focus in 2025 will be to increase FPSO efficiency towards that goal. The first step, a flotel-supported campaign to substantially reduce the maintenance backlog and improve equipment redundancy, is expected to commence shortly, once remaining regulatory approvals are received," said Fowles.
Karoon has also secured a vessel to conduct well intervention activities in SPS-88 in Bauna within the first half of the year so that it can be brought back onstream before mid-year. Fowles believes this to be a crucial step, alongside the flotel-supported maintenance campaign, in 'the reinstatement of production from SPS-88, which we expect back online at rates of 2,000 – 2,500 bopd before mid-year, is expected to help mitigate natural decline in 2025'.
A lightweight well intervention vessel will be deployed to replace the faulty gas lift valve in the SPS-88 completion string. The relevant approvals and necessary support vessels have been put in place for the intervention activities to begin.
To know more about the global well intervention scene, click here.
Baker Hughes has been awarded a multi-year contract from ExxonMobil Guyana to provide specialty chemicals and related services for its Uaru and Whiptail offshore greenfield developments in Guyana’s Stabroek Block, one of the most prolific oil discoveries of recent years.
The contract includes all topsides, subsea, water injection and utility chemicals for the Errea Wittu and Jaguar FPSO vessels, which are currently under development, and are targeted to begin production in 2026 and 2027 respectively. Baker Hughes has established local supply chains to create a reliable and efficient source of chemicals to address the unique needs of these developments.
Uaru and Whiptail are ExxonMobil Guyana’s fifth and sixth projects in the country, where it has been producing oil for more than five years. The two developments will include up to 20 drill centres and 92 production and injection wells. Each FPSO will have a capacity of 250,000 barrels per day, bringing the country’s total daily production capacity to approximately 1.3mn bbl. According to its recently-released 2024 results, Exxon Mobil achieved record production in Guyana last year.
Since “first oil” at the offshore Liza Phase 1 project five years ago, Guyana is now the third largest per capital oil producer in the world and is seeing its offshore sector expand rapidly, which in turn is spurring significant economic growth in the country.
Baker Hughes has a strong history of localisation in Guyana, opening a multimodal supercenter in Georgetown in 2022. The company also provides a variety of services and equipment to operators in the country, including turbomachinery for ExxonMobil Guyana’s FPSO fleet and production chemicals for the Liza Unity vessel.
“ExxonMobil Guyana and Baker Hughes share a long history of supporting Guyana’s energy sector, and we look forward to working together to write its next chapter,” said Amerino Gatti, Executive Vice President, Oilfield Services & Equipment at Baker Hughes. “Our experience operating across the country’s energy supply chain and unmatched expertise in oilfield and industrial chemicals make Baker Hughes uniquely suited to support complex FPSO operations such as these.”
It was a widely successful 2024 for Petrobras as the Brazilian operator has reported it has achieved all of its production targets that were established in the 2024-2028+ Strategic Plan.
In total, oil and natural gas production reached 2.7 million barrels of oil equivalent (boed). Commercial oil and natural gas production reached 2.4 million boed and oil production was reported at 2.2 million barrels per day.
The operator set a new annual record for total own and operated production in the pre-salt, with 2.2 million boed and 3.2 million boed respectively, equating to 81% of the company’s total production.
Petrobras made significant headway in 2024, with one note-worthy project including the start-up of two new platforms: the FPSO Maria Quitéria, located in the Jubarte field in the Campos Basin; and the FPSO Marechal Duque de Caxias in the Mero field located in the Santos Basin pre-salt layer.
During the year, the FPSO Sepetiba platform, in the Mero field, reached its maximum oil production capacity after eight months of operation. The ramp-up of FPSO platforms partially offset the losses resulting from maintenance shutdowns and the decline in mature fields in addition to the impact on production due to unscheduled shutdowns determined by the ANP and the effects of the Ibama strike.
Another significant milestone of the year was the start of commercial operations of the Natural Gas Processing Unit (UPGN), located in the Boaventura Energy Complex, in November which has the capacity to process 10.5 million m3/day of gas through its first module.
Helix's Q7000 purpose-built DP3 semi-submersible vessel will undergo hull clearance among other maintenance activities at Namibia’s Port of Walvis Bay before it is all set to start for delivering a decommissioning contract off the coast of Brazil as agreed with Shell in 2022
The year-long contract also mandates plug and abandonment services at the Bijupira and Salema fields in Brazil’s Campos Basin.
It will take an estimated 10 days – that will also involve the removal of maring growth from the pontoons – to have the vessel prepared for operations offshore Brazil.
Helix's Q7000 vessel that was built in 2019 is equipped for riser-based subsea well intervention and decommissioning operations. With a capacity to withstand harsh environmental conditions, the unit supports production enhancement operations, well-cleanup, and field development. With a variable deck load capacity of about 3,000 metric tons besides well intervention and service fluids, Q7000 can support a crew of as many as 140 people.
The upper deck has a 600-metric-ton well intervention tower with active and passive heave compensation, and a skidding system for well intervention support equipment and tubular storage make up the large flush deck. The below deck comprises twin work-class ROV systems, bulk fluid storage, and pumping systems.
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