What's Happening?
Equinor, in partnership with ExxonMobil Brasil, Petrogal Brasil, and Pré-sal Petróleo SA, has commenced production at the Bacalhau field in Brazil's Santos basin. This marks a significant milestone as Bacalhau is one of
the largest deepwater developments globally. The field, located in the pre-salt region offshore Brazil, began production on October 15. It is expected to have a peak production capacity of 220,000 barrels per day and contains recoverable reserves exceeding 1 billion barrels of oil equivalent. The project is notable for its low carbon emissions, with Equinor setting a benchmark of 9 kg of CO2 per barrel of oil equivalent. The development includes 19 production and injection wells, which will be brought online sequentially.
Why It's Important?
The Bacalhau project represents Equinor's largest international offshore investment and is a core growth area for the company. It is expected to contribute significantly to Equinor's goal of generating over $5 billion in free cash flow by 2030. The project is also set to support around 50,000 jobs over its 30-year lifespan, providing long-term economic benefits to Brazil. The use of advanced technology, such as the Floating Production, Storage and Offloading (FPSO) unit, highlights a shift towards more sustainable and efficient oil production methods.
What's Next?
As the project ramps up, Equinor plans to assume full operation of the FPSO facilities after the initial phase operated by MODEC. The sequential online activation of the wells will gradually increase production, contributing to Brazil's oil output and economic growth. The project's success could encourage further investments in Brazil's oil sector, potentially leading to more job creation and technological advancements.
