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    Equinor and partners sanction Brazil pre-salt project

Summary

Gas production could meet 15% of Brazil's national gas demand. [Image: Equinor]

by: Dale Lunan

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Natural Gas & LNG News, Americas, Security of Supply, Corporate, Investments, News By Country, Brazil

Equinor and partners sanction Brazil pre-salt project

Norwegian Equinor and partners Repsol Sinopec Brasil and Petrobras said May 8 they had sanctioned the estimated US$9bn BM-C-33 project in Brazil’s pre-salt.

Located in Brazil’s offshore Campos Basin, BM-C-33 comprises three different pre-salt discoveries – Pao de Acucar, Gavea and Seat – with combined reserves of more than 1bn barrels of oil equivalent.

BM-C-33, discovered by Repsol Sinopec in 2010, will have a productive capacity of 16mn m3/day through a floating storage, production and offloading (FPSO) vessel capable of processing natural gas and oil/condensate without additional onshore processing.

Production is expected to average about 14mn m3/day, with start-up planned for 2028.

“The final investment decision of BM-C-33 is an important milestone for the partners and for Equinor,” said Geir Tungesvik, Equinor’s executive vice president for projects, drilling & procurement. “Together with partners and suppliers we have developed a significant project which will provide Brazil with energy to meet its growing energy demands and create value for owners and society, contributing to local industrial development.”

Gas exported from the project could represent 15% of the total Brazilian gas demand at start-up, Equinor said.

BM-C-33 will be Equinor’s second FPSO in Brazil using combined cycle gas turbines, significantly reducing carbon emissions during operations. Combining a gas turbine with a steam turbine to capture excess heat, the average CO2 intensity of BM-C-33 over the lifetime of the project will be less than 6 kilos/barrel of oil equivalent.

Sales gas will be exported through a 200-km offshore gas pipeline to the Brazilian gas grid in Macae, in the state of Rio de Janeiro. Liquids will be offloaded by shuttle tankers.

Equinor, with a 35% interest in BM-C-33, will be the operator. Repsol Sinopec Brasil will also hold a 35% interest, while Petrobras will hold 30%.