Over the past few years, it has been said that the Santos Basin will replace the Campos Basin as the most prolific E&P area offshore Brazil. In fact, due to the great exploratory success in the Santos Basin’s presalt layer, the Campos Basin has been eclipsed. Currently, oil production in the Campos Basin is about 1.3 MMboe/d. This volume represents 64% of the total country’s output.
Yet, against all odds, the Campos Basin—which celebrates 40 years of E&P activity this year, was the star in the latest licensing round and helped avoid a bidding disaster when 13 oil companies placed bids on only 13% of the 287 oil fields offered in seven sedimentary basins.
Thanks to Petrobras and ExxonMobil, the Campos Basin raised roughly $1 billion with the acquisition of eight of 10 blocks offered. The duo beat other majors such as Shell, Repsol and CNOOC. The amount of money bid by Petrobras and ExxonMobil accounted for almost 90% of the total bonus revenues raised in the round.
While some experts were surprised by the result, Brazil’s Oil and Gas Secretary Marcio Felix asserted that the Campos Basin still offers great opportunities.
“Contrary to many people’s beliefs, [the] Campos Basin is actually on the rise. This rising is not only seen in the recovery of its mature areas but also in its exploratory frontier,” Felix said after the end of the 14th licensing round Sept. 27.
For Fernanda Delgado, an energy researcher at the Getulio Vargas Foundation, the fact that Petrobras bet high on the Campos Basin shows the area’s huge potential. “Petrobras’ operational staff knows the Campos Basin very well, and the company has proven that the basin can still offer good opportunities for the oil and gas industry," Delgado said. “That’s why oil majors such as ExxonMobil worked to establish partnerships with Petrobras.”
Technology Is Key
Although the Campos Basin has a number of mature fields, since 90% of its fields’ production have reached their peak and have started to decline, current subsea technologies are capable of extracting more oil from these fields. Technology advances are capable of extending the life of these fields.
Polymer injection is among the technologies being used to increase oil and gas recovery in the Campos Basin, Delgado said.
“Recovery is a very strategic area to prepare companies for the future. Companies are beginning to look at this segment with different eyes. Several service companies are working to develop solutions for offshore recovery operations,” Delgado said.
She also mentioned that it is often cheaper to drill a new well than to invest in recovery, which has higher costs for companies. But she predicted that recovery should become increasingly profitable in the near future.
Some moves attest the attractiveness of the Campos Basin for oil companies.
Recently, Petrobras announced the company will invest roughly $6.1 billion in the Campos Basin by 2021. Within these investments, there are intentions to install four new platforms in the area over the next few years. Petrobras said the first unit will be the FPSO Cidade de Campos de Goytacazes, which will produce oil from the Tartaruga Verde and Tartaruga Mestiço fields. Two other units will operate in the Marlim Field, located in the Campos Basin, and the fourth will operate in the presalt area of the Albacora Field. The company expects to produce oil by 2052 in Campos Basin.
In 2015, Petrobras was able to achieve an oil recovery factor above 50% in the Marlim Field. The field currently produces 160,000 boe/d.
The Campos Basin has been developed through increased recovery, with the application of technology and knowledge gained in recent years. Currently, there are ongoing research projects at the Leopoldo Américo Miguez de Mello Research & Development Center, in partnership with Universidade Federal do Rio de Janeiro, aimed at improving the recovery factor through the use of nanotechnology. The Brazilian government will hold the second and third presalt rounds Oct. 27. According to Brazil’s oil regulator ANP, 24 oil companies have been approved to participate in the upcoming rounds. Eight blocks will be auctioned in the Santos and Campos basins.
— Brunno Braga
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