Equinor and partners have taken a final investment decision (FID) on the $8bn first phase development of the Bacalhau field in the Brazilian pre-salt Santos area.
Discovered by Petrobras in 2012, the oil field is located nearly 185km off the coast of Sao Paulo, Brazil. It is located in water depths of 2050 metres.
With a stake of 40%, Equinor is the operator of the Bacalhau field, with ExxonMobil, Petrogal Brasil and Pré-sal Petróleo being its partners.
In March, the project partners received approval for the field development plan from the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP)
Equinor projects, drilling and procurement executive vice president Arne Sigve Nylund said: “This is an exciting day.
“Bacalhau is the first greenfield development by an international operator in the pre-salt area and will create great value for Brazil, Equinor and partners.
“Good cooperation with partners, Brazilian authorities and suppliers has resulted in an investment decision for the Bacalhau field.”
The Bacalhau field, which is located across two licences, BM-S-8 and Norte de Carcará, is expected to produce first oil in 2024.
The field development will include 19 subsea wells tied back to a floating production, storage and offloading unit (FPSO), which will have a production capacity of 220,000 barrels per day and two million barrels in storage capacity.
The FPSO contractor will be responsible for the operations of the FPSO for the first year. Later, the facilities will be operated by Equinor until the end of the licence period.
ExxonMobil Brazil lead country manager Juan Lessmann said: “The development of the Bacalhau field is a strategic investment in our global portfolio and has the potential to bring high returns for ExxonMobil, our partners and the Brazilian people.
“This project has progressed due to the strong collaboration between ExxonMobil, Equinor, Petrogal and the government.”
In January last year, Japanese offshore floating platforms provider MODEC secured the FPSO contract for the oil field development project.
Subsea Integration Alliance, formed by Subsea7 and OneSubsea, was awarded subsea, umbilical, risers and flowlines (SURF) contract for the project.
