Work at Brazil fields advancing

RIO DE JANEIRO, May 4, 2018 – Brazilian E&P company Queiroz Galvão Exploration and Production (QGEP) has started producing from its offshore Atlanta field, the company announced in a Thursday press statement.

“We are pleased to announce the beginning of production in Atlanta, a field in which we have been successfully overcoming technical challenges,” said QGEP CEO Lincoln R. Guardado. “This represents QGEP’s second producing asset and will be a positive contributor to our operating cashflow. This project has a special meaning for us. We are the first Brazilian independent oil and gas company operating in ultra-deep waters, thus proving our technical and operational capability.”

The company expects to bring the field’s output to 20,000 bopd in Q2. Production, which will come from two wells and move through the Petrojarl I FPSO, will be sold to Shell. A decision regarding a third well will be made later in the year. If QEGP moves ahead with the well, a potential 10,000 bopd of production could be added to Atlanta’s total output.

“This phase will be important to the longer term objective of establishing the full development system in Atlanta, where we expect a maximum production of about 75,000 bopd until 2021,” Danilo Oliveira, QEGP’s production director, said in the statement.

The Atlanta field is located in the Santos Basin’s Block BS-4, which QEGP operates with a 30% stake.

The news came as Statoil began drilling in offshore Block BM-S-8, also located in the Santos Basin. The company is using Seadrill’s West Saturn drillship to drill the Guanxuma wildcat in water depths of 1,990 metres.

The Norwegian NOC’s new drilling campaign follows its wrap-up of testing at the Carcara Northwest discovery, estimated to contain 700 million-1.3 billion boe in recoverable reserves. Commercial production from that field is expected by 2023 or 2024.

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