Drilling operations will begin in 2H 2014 on two wells in the giant Libra field off Brazil following approval of the field’s 2014 working and investment plan.
The Brazilian national Petróleo Brasileiro S.A. (Petrobras), along with Pré-Sal Petróleo S.A. (PPSA), approved the document at its Operational Meeting on Jan. 21. Companion state company PPSA was approved under the Brazilian Senate in 2010 to oversee contracts in Brazil’s burgeoning pre-salt areas.
Located about 23km off the state of Rio de Janeiro in the ultradeep waters of the Santos Basin pre-salt polygon, Libra spans 1,547.67sq. km, and is estimated by the Brazil’s National Petroleum Agency (ANP) to have 8 -12 billion bbl oil recoverable. The ANP estimates peak oil production could reach 1.4 MM bo/d.
Drilling activities on the two wells are expected to conclude in 1H 2015. In addition, seismic reprocessing is planned for the entire block, along with studies for a new seismic survey. An extended well test will occur year-end 2016.
The approved capital expenditure for these activities is between US$400 and US$500 million. The Libra production sharing agreement states that the exploration period will last four years from its execution, Dec. 2, 2013. Under the terms of that contract, Brazil’s federal, state and municipal governments are granted a 75% stake of extracted oil.
The minimum exploratory program to be implemented during this period includes a 3D seismic survey of the entire block, two exploratory wells and one extended well test.
The consortium won the field rights to Libra in October 2013. Petrobras, with 40% working interest (WI) leads the charge of companies comprising of the Libra field consortium. Its partners are Shell and Total, each with 20% WI, CNOOC (10% WI) and CNPC (10% WI). Total announced that the production sharing contract was for a term of 35 years.
Elsewhere in the Santos Basin pre-salt, Petrobras submitted a Declaration of Commerciality to the ANP for the Lapa field in December 2013.
Image courtesy Petrobras
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