Valaris DS-17 will drill the Raia project in Brazil

By Equinor

July 22, 2024

This is a machine translation of the press release originally published in Portuguese.

Equinor, on behalf of its partners in the Raia project – Repsol Sinopec Brasil and Petrobras , has awarded Valaris , represented by Ensco UK Drilling Limited and Ensco do Brasil Petróleo e Gás LTDA, a drilling contract for operations in Brazil.

Drilling activities are scheduled to begin in 2026. The objective is to drill six wells, with production beginning in 2028. The total contract value is estimated at USD 498 million, which includes a lag period, mobilization, modifications and integrated services . During the lag period between the current scope of the Bacalhau field and the start on the Raia project, the drilling rig may be available for alternative work. The contract also includes two options.

Raia is one of the most significant gas projects under development in Brazil. Located in the pre-salt region of the Campos basin, approximately 200 km from the coast, at depths of up to 2900m, it contains recoverable reserves of natural gas and oil/condensate in excess of one billion barrels of oil equivalent (boe).

"We are pleased to secure a drilling rig for the important Raia project. We will work together to achieve safe and efficient operations, and look forward to strengthening our cooperation with Valaris. We will be developing the project over the coming years based on our experiences at Bacalhau," he says Mette H. Ottøy, Executive Director of Purchasing.

The DS-17 is an ultra-deepwater drillship, capable of operating in water depths exceeding 3600 meters.

Drilling and well services

Additionally, Equinor, on behalf of the partners, awarded agreements to SLB, Baker Hughes and Halliburton for drilling and well services for the Raia project, worth a total of approximately USD 109 million. The contracts reinforce Equinor's collaboration and experience with the three selected suppliers around the world. They will be essential to ensuring safe and efficient drilling and well operations. SLB will be the primary service provider, with complementary activities provided by Baker Hughes and Halliburton.

Importance of the Raia project

Raia will be a key contributor to the further development of the Brazilian gas market. When in operation, it can supply up to 15% of the total gas demand in Brazil. The project will also contribute to energy security and local economic development, creating up to 50,000 direct and indirect jobs locally over its lifetime.

“Raia is part of the next generation of projects in Equinor’s portfolio and will generate value for shareholders while contributing significantly locally, through ripple effects. Our purpose is to continue generating energy for people and progress for society, always seeking the best technologies, partnerships and solutions”, says Veronica Coelho, president of Equinor in Brazil.

The partners in the Raia project: Equinor 35% (operator), Repsol Sinopec Brasil 35% and Petrobras 30%.

FACTS ABOUT THE RAIA PROJECT:

• Partners: Equinor 35% (operator), Repsol Sinopec Brasil 35% and Petrobras 30%

• The discoveries were made by Repsol Sinopec in 2010

• Equinor became operator in 2016

• The block is in the pre-salt of the Campos basin, in Brazil

• The license is located approximately 200 km offshore, at depths of up to 2900m

• Contains recoverable natural gas and condensate in excess of 1.0 billion boe

• Gas export capacity is 16 MSm3/sd. It could represent 15% of Brazilian gas demand at the start of operations

• FPSO capacity is approximately 126,000 bpd

• The start of operations is scheduled for 2028.