PetroRio Extends Cluster Life With Production Start From New Well
Brazilian oil and gas company PetroRio has started production from one more well on the Tubarão Martelo field off Brazil in an attempt to extend the life of the cluster.
PetroRio started production from the TBMT-10H well earlier this week. The initial production was around 3,800 barrels of oil per day, but this is still considered the assessment period.
The well was originally drilled in 2013 and the company PetroRio stated that it recently accomplished upper completion, installation, and connection to the Bravo FPSO, which represents an investment of $17.5 million. The estimated payback period is less than three months.
The firm also stated that the well’s estimated recoverable volume of 3.7 million barrels will be reclassified from proven undeveloped reserves to proven developed producing reserves in the next reserves certification report.
According to PetroRio, this incremental production will also benefit from the royalty rate reduction of 5 percent, as approved by ANP in July 2021. The ANP granted the company a royalty rate reduction for the Tubarão Martelo field to incentivize investment in revitalization.
“The well’s start of operation is another step in the cluster’s revitalization and life extension, both fundamental parts of PetroRio’s business strategy,” the company said.
To remind, PetroRio said last year that it would take advantage of the connection between the Polvo field and the FPSO OSX-3, to make further investments for the connection of a sixth well, the cost of which was estimated at around $20 to $25 million.
PetroRio concluded the tieback between the Polvo and Tubarão Martelo fields in the summer of 2021 which meant that it was the first independent company to create a private cluster of mature fields in the Campos Basin region.
The tieback project between the Polvo-A platform and the Bravo FPSO was completed in 11 months and had a $ 45 million capex, which would enable an operational cost reduction of $50 million per year for the company.
The Tubarão Martelo field is located in the south of the Campos Basin, next to the Polvo Field, on the northern coast of the Rio de Janeiro State.
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