Equinor and Partners Choose Concept for Offshore Brazil Field

Equinor (NYSE: EQNR) reported late last week that a development concept has been approved for the BM-C-33 gas/condensate field in the pre-salt Campos Basin offshore Brazil.

“BM-C-33 is a key project in our portfolio and concept select is an important milestone in our effort to mature the project,” Geir Tungesvik, senior vice president for projects with operator Equinor, remarked in a written statement emailed to Rigzone. “It is important to further optimize and improve the project business case to make it more robust for future market.”

Discovered in 2010 by Repsol Sinopec Brasil (OTCMKTS: REPYY; NYSE: SNP), the license sits approximately 124 miles (200 kilometers) offshore in up to 6,562 feet (2,900 meters) of water, stated Equinor, the operator with a 35% interest. Other BM-C-33 license partners include Repsol Sinopec Brasil (35%) and Petrobras (NYSE: PBR) (30%).

This map shows the BM-C-33 field's location. IMAGE SOURCE: Equinor

According to Equinor, the development concept calls for sending BM-C-33 well streams to a floating production, storage, and offloading (FPSO) unit at the field. The FPSO will process gas and oil/condensate to sales specifications for export, and crude will be offloaded by shuttle tankers and shipped to the international market after ship-to-ship transfer, the operated noted. The company added that a newbuild hull has been selected to accommodate 30 years in the field.

Equinor stated the gas export plan relies on an integrated offshore gas pipeline from the FPSO to a new dedicated onshore gas receiving facility inside Petrobras’ TECAB terminal at Cabiúnas in Brazil’s Rio de Janeiro state. Gas will subsequently enter the domestic gas transmission network, Equinor pointed out.

“BM-C-33 holds substantial volumes of gas,” commented Veronica Coelho, Equinor’s Brazil country manager. “A completion of the ongoing liberalization of the natural gas market in Brazil in line with the current plan is key for the further development of the project.”

The planned gas export capacity for the BM-C-33 development is 16 million cubic meters per day, with exports expected to average 14 million cubic meters per day – a significant volume based on current Brazilian gas demand, Equinor noted. The company added the project will boast 20,000 cubic meters of daily oil processing capacity.

“BM-C-33 is an asset that can generate value for the society, both through the creation of direct and indirect jobs, ripple effects, and through a gas supply that can induce industrial growth, as has happened in other countries,” said Coelho.

Equinor pointed out that details on the project timeline toward next decisions and production start-up are pending.

To contact the author, email mveazey@rigzone.com.