Brazil approves extension of Perenco offshore concession

Brazil's hydrocarbons regulator ANP approved on Thursday an extension of the concession for the Pargo, Carapeba and Vermelho offshore oilfields in the Campos basin from 2025 to 2040. 

Discovered in the 1980s by federal oil company Petrobras, the assets were sold to Perenco in 2019 for US$389mn. 

The development plan for the areas presented by the British-French company calls for up to US$363mn in investments, including firm (US$193mn) and contingent (US$170mn) expenditures, besides US$390mn for the deactivation of the fields. 

Perenco estimates additional production of 14.9Mb (million barrels) of oil in Pargo, 35.6Mb in Carapeba and 35.1Mb in Vermelho with the investments. 

Some 1.63bn reais (US$309mn) in royalties are expected to be generated. 

Perenco’s institutional director, Leonardo Caldas, recently spoke with BNamericas about the possibility of extending the concession to 2052.

The following information on the fields comes from ANP:

Pargo 

Discovered in January 1975

First oil produced in December 1988

Current output: 1,850b/d of oil and 12.4Mm³/d of natural gas (November 2020) 

Volume of oil in situ: 276Mb 

Number of wells drilled: 39, eight producing, four water injection (closed)

Carapeba

Discovered in February 1982

First oil in December 1988

Last output: 1,086b/d of oil and 4.9Mm³/d of natural gas (March 2019)

Resumption of production depends on an evaluation of the use of an existing oil pipeline connecting the PCP-2 and PPG-1 platforms 

New oil pipeline foreseen for 2022

Volume of oil in situ: 667Mb

Number of wells drilled: 90, 20 producing (closed), three water injection (closed)

Vermelho 

Discovered in December 1982

First oil in December 1988

Current output: 1,751b/d of oil and 8.3Mm³/d of natural gas 

Volume of oil in situ: 411Mb

Number of wells drilled: 99, eight producing and one water injection (closed)

ARABAIANA, DENTÃO AND PESCADA 

ANP also approved the sale of Petrobras’ 65% share in the Arabaiana, Dentão and Pescada fields in the Potiguar basin to OP Pescada Óleo e Gás. The company is a subsidiary of Ouro Preto Óleo e Gás, which holds the remaining 35%.