Equinor, ExxonMobil Plan Bacalhau Expansion off Brazil

The duo looks to new drilling of the $8-billion pre-salt project in the Santos Basin.

Bacalhau FPSO.
Bacalhau FPSO.

Equinor and partner ExxonMobil are considering adding a second drilling rig and a second floating production platform for the next phase of the Bacalhau development in the Santos basin, along with a 100-mile-long gas pipeline, according to Reuters.

The companies want to boost future production from Bacalhau, Equinor’s largest project outside of Norway. A new appraisal well is planned in the north of the field next year “to better understand the reserves base for the Phase 2 development,” according to Equinor, and the partners are assessing awarding a contract for a second drilling rig.

The partners sanctioned the $8-billion project a year ago. The field is situated across two licenses, BM-S-8 and Norte de Carcará. The resource is a high-quality carbonate reservoir containing light oil.

The development will comprise 19 subsea wells tied back to an FPSO located at the field. The planned FPSO be one of the largest in Brazil with a production capacity of 220,000 B/D and 2 million bbl in storage capacity. The stabilized oil will be offloaded to shuttle tankers, and the gas from Phase 1 will be reinjected in the reservoir. First oil is expected in 2024.