Perenco plans to bring an FSO to Brazil in 2021

Perenco is planning to bring a floating storage and offloading unit (FSO) to Brazil by the end of 2021, the oil company’s institutional director, Leonardo Caldas, said Tuesday during the Rio Oil and Gas 2020 event. 

The goal is to have an alternative to transport production from Campos basin’s Pargo complex, acquired from Petrobras in 2019. To commercialize its output, Perenco still relies on the Brazilian NOC which owns the local export infrastructure. 

“With Petrobras’ divestments, there will be new refiners and traders coming to Brazil that could be interested in Pargo’s production,” Caldas said. 

Perenco’s projected capex for the shallow water project is over US$2bn by 2040. But its execution depends on regulator ANP approving the extension of Pargo’s concession contract, which expires in 2025.

The target is to increase the asset's production from 4,000b/d to 15,000-20,000b/d by 2024, increasing the recovery factor by 4%.

According to Caldas, two platforms are operating in the area and another one will come online soon. “It is within our plans to restore almost all of the 65 wells in the area,” the executive said.