Petrobras plans to remove 4 more Marlim field platforms in 2024

Brazil’s Petrobras plans to invest US$11bn in decommissioning 23 offshore platforms between 2024 and 2028

Four of them, in the Marlim field in the Campos basin, will be removed in 2024, the company's strategic support manager for decommissioning, Luciana Chamusca, told BNamericas. 

The decommissioning of these units is part of the project to revitalize the asset, which earned the state-run firm this year’s Offshore Technology Conference (OTC) distinguished achievement award.

During the conference in Houston, Chamusca spoke to BNamericas about Petrobras’ plans in the area.

BNamericas: In what situations does Petrobras carry out offshore decommissioning?

Chamusca: There’s a stage in the life of an offshore production system when the [oil] deposit is no longer economically positive, in other words, the cost of extracting that oil becomes more expensive than the oil itself. When we reach that point, which is at the end of the life cycle, around 25 years on average, Petrobras has to make three possible decisions – and we opt, of course, for the one that adds the most value to our business. 

The first alternative we evaluate is whether it's possible to extend the useful life of the field, taking the production curve as far forward as possible. And then we do these revitalization programs, complementary projects. This is what happened in Marlim, which won us the [OTC] award this year. This is the main revitalization project underway in the world. About 10 years ago we realized that by making a few changes we could extend the life of the asset. 

When this isn't feasible, we move on to the second alternative that adds more value: divesting, transferring this asset to a company that operates in mature fields as part of its core business. We've done this with several fields. We sold them to 3R Petroleum, Perenco, Trident Energy. These are companies that specialize in this phase of the field's end of life. 

When none of these possibilities is feasible, then we move on to decommissioning, which is a legal obligation, consisting of the proper disposal of that system. When we talk about disposal, it doesn't necessarily mean collecting everything. There's a base case which states that, when possible, everything should be collected. But we can present a case in which the alternative of leaving it in situ is more sustainable. 

BNamericas: Has Petrobras received authorization to do this?     

Chamusca: Yes. A production system today is divided into some major scopes, such as the platform, which can be fixed or floating, and the subsea system, which connects the platform to the well, including lines, ducts, cables, manifolds, Christmas trees; and the well itself. 

As far as the platform is concerned, the base case today is the collection. We don't currently have any cases in Brazil where the platform has been left there. In the case of floating platforms, for obvious reasons. It's a ship, and we take it out to be dismantled on land. Fixed platforms, which in many places in the world are used to make artificial reefs, in no Petrobras project have we been allowed to use that option. But so far, we've only had one fixed platform decommissioned, which was the Cação field platforms. 

This was a project that we even considered proposing to the regulatory bodies to keep partially in situ, but we felt a lot of resistance and ended up submitting a proposal for full removal, which was approved by the navy, Ibama and the ANP. 

BNamericas: Looking ahead, is Petrobras still considering this possibility of in situ maintenance of structures?

Chamusca: Yes. The main focus of discussion in the country today is in relation to subsea systems. These are pipelines that were often built to be left there forever. When these systems were set up back then, it wasn't necessarily thought that they’d have to be removed afterwards. We’ve carried out several decommissioning projects and been authorized to keep part of these systems on the seabed. We collect some of them. 

BNamericas: There has been talk of the submarine warehouse…

Chamusca: That's another matter. The submarine warehouse was a kind of closet. We didn't use it for systems that were in use. It was a warehouse where we stored equipment from fields that were 200km, 300km from the coast. This warehouse was designed to contain everything collected. There were no artificial reefs there. It was a different context. 

BNamericas: But in the case of other sites with subsea systems installed, there are cases where Petrobras is being allowed to leave them on the seabed. 

Chamusca: Yes. 

BNamericas: What about fixed platform jackets, specifically, looking forward, is that a possibility?

Chamusca: It’s a possibility. We carry out studies on a case-by-case basis. Every system we decommission, we do an analysis, we look at the subsea environment we're dealing with. We analyze the value of keeping that jacket there. We’re concerned about the sun coral, which is an invasive species that we have on the coast. So we take various elements into consideration to make a proposal for partial maintenance in situ, whether for a jacket or any other system. 

Looking ahead: in the northeast region, for the time being, we haven't identified any objective proposals. We're still conducting studies. In the southeast, it's another reality, another dimension of these units, which we're still studying. What I can tell you is that Petrobras' base case today is one of collection because it’s the one approved by Ibama. A case for remaining in situ requires much more study. 

BNamericas: What are the main decommissioning projects due to come off the drawing board in the next few years?

Chamusca: We have 23 projects that will be decommissioned over the next five years, 14 of which are floating and nine fixed. We're talking about 1,900km of flexible lines that are already committed to being removed, as well as 550 offshore wells that will be abandoned and permanently plugged. 

These figures make Brazil the third largest decommissioning market in the world, behind the Gulf of Mexico and the North Sea.  

Today, several projects in the Campos basin are already being decommissioned. They are those associated with the revitalization of Marlim, such as the P-32, P-33, P-20, P-26, P-37 platforms... everything is being decommissioned now. 

BNamericas: These are the FPSOs that were replaced by the Anita Garibaldi and Anna Nery FPSOs, right?

Chamusca: Yes, there were nine floating units that were replaced by these two new units. 

BNamericas: Of the nine, how many are still there?

Chamusca: For now, only 32 and 33 [have been removed]. There are still seven, of which we should remove four this year. 

We’ll basically decommission units in the southeast over the next few years. From 2028, we'll start decommissioning in the northeast. 

But these projects are being considered seven years in advance, so we've already started the analysis for the northeast. The biggest part of the projects is planning which decommissioning solution we’ll adopt. 

BNamericas: Are there any other highlights in terms of decommissioning?

Chamusca: The main message we’re sending out is that we want to see decommissioning as a vector for sustainability. We’ve already identified that, of the 17 social development goals set by the United Nations, we’ve managed to contribute to 11 of them through decommissioning projects, such as quality education and reducing greenhouse gas emissions. 

It's a huge opportunity for the country, not just for the shipyards, but beyond, with all the recycling work involved. The P-32 and P-33 auctions were very successful. The Brazilian market is interested in developing. We have a steady, perennial demand. We’re decommissioning [the production units] from the ANP's zero [bidding] round, referring to the first [exploration and production] contracts, signed in 1998. We're in the agency's 22nd or 23rd round now.

BNamericas: How do you divide up the decommissioning contracts?

Chamusca: We're still testing the models, trying to optimize them as much as possible by separating the scopes. The first block of contracts consists of preparing for the unit's exit from the lease, with de-anchoring work, for example. Then we analyze the case of the subsea systems. 

BNamericas: Petrobras has signed a contract in this area with Ocyan, right?

Chamusca: An EPRD contract: engineering, preparation, removal and disposal. We contracted a closed package and, at the end, we received a certificate for the disposal of the recycled material. But that's only for the subsea system. 

BNamericas: It doesn't involve topside, then?

Chamusca: No. One case of topside was the contract for the Cação platforms. There, likewise, the contracted consortium [Triunfo Logística, Sea Partners Navegação e Logística, Método Engenharia and Shore Offshore Services] removed everything and recycled it. 

Last year, we launched a sustainable disposal model for floating units. Scrap metal has enormous value. Brazil imports scrap metal. And over a 10-year horizon, just from decommissioned floating units, around 800,000t of scrap will be generated. So we sell these [floating] units in an auction and oblige the buyer, if it's not a shipyard, to present us with a contract with a green shipyard, proving that it will recycle them properly. 

The first two were compared by Gerdau, in partnership with Ecovix Shipyard. In these cases, we disconnect the platform ourselves and deliver it to the shipyard. 

BNamericas: Have the contracts been signed for the four units that will be removed from Marlim this year?

Chamusca: No. We’ll still hold the auctions.