Brazil roundup: Oil and gas contracts/output, green hydrogen law, solar power and more

O&G contract 1

Petrobras has signed the first contract for the acquisition of subsea equipment to enable the start of production at the Atapu 2 and Sépia 2 projects, to be installed in the Santos basin pre-salt, and for the Roncador field in the Campos basin. 

The commercial agreement was signed with the SLB OneSubsea group, and the equipment will begin to be built this quarter at factories in Brazil.

The contract includes the supply of up to 19 wet Christmas trees (WCTs), five electro-hydraulic distribution units (EHDUs), six pipeline end manifolds (PLEMs) and spare equipment. The provision of services involves technical assistance, installation, intervention, preservation and maintenance.

The contract provides for a minimum local content of at least 55% for the manufacture of equipment and 40% for services, but SLB OneSubsea expects to reach a percentage of 65%. 

O&G contract 2

Ocyan has won a new contract with Petrobras, this time in the area of offshore maintenance and services, with a duration of at least four years.

The contract, worth approximately 750mn reais (US$131mn), will involve activities in the Búzios field, 180km from the city of Rio de Janeiro. 

O&G output

Brazil’s oil and gas production in June totaled 4.353Mboe/d (million barrels of oil equivalent per day), according to regulator ANP.

Oil production was 3.409Mb/d, up 2.7% compared to the previous month and 1.3% from the same month last year.

Natural gas output was 150.07Mm3/d, an increase of 3.1% compared to May and a drop of 1.4% from June 2023.

Hydrogen

President Luiz Inácio Lula da Silva on Friday signed into law the bill that creates the regulatory framework for green hydrogen. 

The law includes a series of initiatives to develop the industry. Among them is the special incentive regime for low carbon hydrogen production (Rehidro). The incentives will be valid for five years, starting January 1, 2025.

Solar power 1

Solar power has just passed the 45GW mark in installed capacity, according to the Brazilian photovoltaic energy association Absolar. 

There are 30.7GW of installed power in distributed generation and 14.8GW in centralized generation.  

According to Absolar, the photovoltaic sector has attracted more than 211bn reais in investments and generated more than 1.4mn jobs in the country. 

Solar power 2

Global developer of photovoltaic inverters and storage systems Sungrow has signed a partnership with RZK Energia to supply equipment for 22 photovoltaic plants. 

The agreement provides technological support for a total of 100MW of installed power in RZK Energia's distributed generation assets located in the states of Piauí (8), São Paulo (8), Paraná (2), Ceará (1) and Goiás (1), plus two in the federal district.

M&A 

3R Petroleum has concluded the incorporation of Enauta and Maha Holding. 

As a result, 3R will have production of around 70,000boe/d, corresponding to 1.5% of Brazil’s total output.

Offshore 1

Enauta has completed the subsea system and line connections to FPSO Atlanta for the unit's first oil. 

The company is now awaiting the issuance of the environmental operating license and authorization from the ANP. 

In the coming weeks, the campaign to install the second multiphase pumping module and connect the other wells that will contribute to the FPSO's production growth will begin.    

Offshore 2

The Almirante Tamandaré FPSO has left the CMHI shipyard in China for the Búzios field, in the pre-salt Santos basin. 

The platform will be the first high-capacity unit to be installed in the field, with the potential to produce up to 225,000b/d of oil and process 12Mm3/d of natural gas. 

The FPSO is scheduled to start operating in 2025.