Brazil upstream news

ExxonMobil has increased its holdings in Brazil’s pre-salt basins after winning eight additional exploration blocks during Brazil’s 15th bid round.

The consideration for the transactions amounts to US$1.95 billion, including closing adjustments.

The move is a response to increasing demands for ship-to-ship transfers to support Brazil’s soaring oil exports.

Total has announced that it has taken the investment decision for the first large-scale development phase of the Libra project, located deep offshore, 180 km off the coast of Rio de Janeiro, in the pre-salt area of the Santos Basin in Brazil.

The transaction nearly triples Statoil’s production in Brazil, with attractive break-evens and potential for additional value creation for both parties through the application of Statoil’s expertise in improved oil recovery (IOR).

In the declaration sent to the regulatory agency, it was suggested that the new field should be named Mero, and the field’s total recoverable volume is estimated at 3.3 billion bbls of oil.

The total amount of the operation is US$ 54.5 million and will be paid on the closing date of the deal.

The FPSO was completed safely, on time and within budget, and departed the shipyard recently for the Bananal Bay in Brazil.

It covers the execution of the subsea pipeline connection for the new production platform in Peregrino Phase II Project, located in Campos Basin. This fixed platform will be connected by the in-field lines to the existing platform.

Shell will benefit from technical solutions, contract management expertise and cost efficient initiatives Petrobras applies to Brazil’s pre and post-salt projects. Shell will share with Petrobras its deepwater experience, especially on cost efficiency efforts and use of technology.