Deep developments taking shape
  from: Offshore Engineer
  by: Marshall DeLuca
  Wednesday, September 01, 2004

In recent months, deepwater development activity in Brazil has been hotter than any other place in the world with several major pieces of Petrobras's plans moving into place and contracts being awarded for many others. Marshall DeLuca provides the latest update on the action.

The latest on the Brazilian deepwater developments underway or planned for the near term include:

According to the original plan, Albacora Leste, the eastern sector of Petrobras's massive Albacora Campos Basin field, was expected to be onstream by now, but due to shipyard delays with the FPSO P-50 that will serve as the centerpiece of the development the project is running a year behind schedule.

The vessel left Singapore's Jurong Shipyard the second week in July headed for the Mauá Jurong yard outside of Rio de Janeiro. Jurong converted P-50 into an ABS-classed 180,000b/d of oil and 6 million cm/d capable FPSO from the 280,000t VLCC Felipe Camarao, marking the yard's sixth completed floater for Petrobras to date.

Both shipyard and operator have admitted to a share in the blame for the delays and related cost overruns resulting chiefly from job scope increases and design changes and have worked out their differences through re-negotiations of the contract.

P-50 is expected to arrive in Brazil this month where it will undergo topsides integration and commissioning at Mauá Jurong which fabricated the modules.

Upon completion the vessel will head to the field where it will hook to 15 producers and 15 water injectors. Peak production is expected to be 164,000b/d reached in 2009.

Halliburton continues to struggle with its dual-FPSO Barracuda-Caratinga EPIC project for Petrobras. Most recently in June the company, through its KBR subsidiary, announced the project is experiencing further delays primarily attributed to what the company says is a significant reduction in shipyard subcontractor productivity in completing the projects in Brazil as well as some rework identified during the integration of the modules onto the vessels. As such, Halliburton took an additional pre-tax charge in the second quarter of about $200 million as a result.

The project involves two ABS-classed FPSOs converted from VLCCs and renamed P-43, destined for 2600ft of water on Barracuda, and P-48 that will produce Caratinga in 3400ft of water. Both are capable of storing two million barrels and processing 150,000b/d of oil.

Final work on the two vessels is underway at the Mauá Jurong yard for P- 43 and BrasFELS for P-48 and has been increased to an accelerated pace. Petrobras said it expected P-43 on location on Barracuda this month with P-48 onsite on Caratinga in November and both platforms fully operational before the end of the year.

Petrobras added that the delays are the responsibility of KBR. It said this reduced productivity mentioned by Halliburton is mainly because of the failure of KBR to deliver materials required to allow the shipyards to complete mechanical work on platform systems within the completion schedule.

The two companies are continuing to work towards finalizing an agreement in principle that would resolve certain contract issues and establish revised time frames and penalty clauses in order to provide better and more precise conditions for concluding the work.

Once onstream, Barracuda is expected to produce a peak of 146,000b/d of oil with 34 wells (20 producers, 14 water injectors) while Caratinga will peak at 127,000b/d with 20 wells (12 producers and 8 water injectors).

Reports out of Rio indicate Petrobras is in the process of fast-tracking development on its 2003 Golfinho light oil discovery in the Espirito Santo Basin. The plan calls for a leased FPSO set in between 4000ft and 4500ft of water producing from around four to eight wells at rates of 100,000b/d of oil and 4 million m3/d of gas.

Petrobras invited companies to tender for the FPSO contract in May with an award likely by the end of the year if approved by state regulator ANP. If it holds to this schedule, first production would occur by year-end 2006. The field has estimated reserves in the 250 million boe range.

In July, Brazilian engineering firm GDK Engenharia began work on the first of two Petrobras projects named for a local whale breed, Jubarte, a 600 million barrel heavy oil find discovered in January 2001 located in the extreme north of the Campos basin.

Due to the heavy oils found in the field (17°API), Petrobras initially was unsure of the field's commerciality, the challenge being how to produce the oil using subsea completion and electrical submersible pumping as the artificial lift. As such, in December 2001, the company embarked on a pilot project centered on an extended well test using a 950hp ESP installed directly above a subsea tree producing to the Seillean FPSO which was modified to handle the heavy crude. Since that time the project has shifted to a long duration test and the well has reached a peak of 22,700b/d making the field the first in the world to produce this type of crude.

With this success, Jubarte was declared commercial in December 2002 and the first phase of production is expected by the second half of next year. The development calls for four wells to produce to P-34 FPSO, presently under modification at GDK to upgrade the processing unit and extend the mooring capability from 2600ft to 4400ft. The vessel was previously stationed on the Barracuda field before being removed after nearly sinking in 2002. When complete the vessel will be renamed Juscelino Kubitschek in homage to a former Brazilian president and capable of producing 60,000b/d.

A second phase using another FPSO is also being planned for a 2009 startup. This will involve 21 producing wells, six injection wells with production expected to be in the 150,000b/d range.

Petrobras is also undergoing development planning for its second whale project, the neighboring Cachalote. The field was discovered in November 2002 in 4800ft of water with reserves in the heavy crude range of 19°API and about half the size of Jubarte. The field was declared commercial in December 2002 and will be developed through a single phase using a floating production unit producing six wells with four water injectors. Production is expected to average between 50,000b/d and 75,000b/d.

Bidding for contracts relating to P-53, the FPSO that will produce 180,000b/d on the Marlim Leste field, were finally submitted to Petrobras in late May after months of delay within the state-owned operator. A call for bids on the EPC contract was originally opened in late November and was expected back in February, which was again postponed until 31 May due to problems with the government over the oil export line for the project.

The tender calls for conversion of VLCC Settebello into the FPSO and construction of topsides. The vessel will be set in 1100m of water and fitted with a monster-sized turret capable of accommodating 75 risers.

Several companies have bid on the project including the Jurong Shipyard in Singapore which has worked on several Petrobras floater projects, as well as three Brazilian groups. While no timetable has been announced for award, reports indicate it could come as early as this month.

Some contracts have been let, however. Dresser-Rand has won the rights to supply the gas compression module while Rolls-Royce will provide the power generation.

Marlim Leste will produce from 15 wells with nine water injectors connected to the FPSO through flexible lines. The oil will be transported to shore via pipelines while gas will be sent to P-26 in the Marlim field. Production is expected to commence in the second quarter of 2007.

On 7 June Petrobras began production on the FPSO Marlim Sul, a 1.6 million barrel capacity converted VLCC that is being used for what the company calls the 'Complementary System' of Module 1 of the Marlim Sul field.

The Marlim Sul field which has been in production since April 1994 is presently in the first of a planned four-phase development.

This first phase, called Module 1, began production in December 2001 using P-40 semisubmersible to produce 16 wells with10 water injectors averaging flow of 150,000b/d.

However, due to excellent productivity, Petrobras decided to enact the Complementary System that would add five oil producers and four water injectors to the development at a rate of 100,000b/d.

To accommodate this additional production the company leased the FPSO Marlim Sul from SBM for an initial term of seven years and ten months. Keppel FELS performed the conversion and the unit is equipped to process 100,000b/d of oil, 2.3 million m3/d gas lift and water injection of 125,000b/d.

Peak production is expected to be reached before year-end.

In the meantime, contracts have begun going out for the second phase - Module 2. This plan will use a semisubmersible production unit, P-51, the first built entirely in Brazil, set in 4100ft of water capable of producing 180,000b/d of oil and 6 million m3/d of gas from around 14 producers with 10 water injectors beginning in the first quarter 2008.

A consortium of Fels Setal and Technip Engenharia have won the $639 million job to build the 41,000t platform. According to the plan Keppel Fels in Singapore will build the corner nodes of the lower hull, a portion of the lower hull will be subcontracted to the Brazilian Nuclep yard and Fels Setal will build the remainder of the lower hull, deckbox, topside, accommodation and modules as well as perform the commissioning. Technip will be responsible for the overall engineering and detailed engineering of the deckbox and offshore mating and transportation.

Construction is expected to take 47 months.

Additionally, Kvaerner Oilfield Products has won the $16 million contract to supply 11 GLL2000 subsea trees for the job. The trees are rated for 2000m water depth operation and delivery is expected next year.

Expansion of the giant Roncador field is beginning to take shape. Late last year Petrobras awarded a consortium of Fels Setal and Technip a contract to fabricate a new 80,000t displacement semisubmersible FPU, P-52, that will be set in 5900ft of water with capacity to produce 180,000b/d of oil. This new facility, expected on location in August 2006, is part of the second phase of the field's Module 1A development plan.

The first phase of Module 1A presently has the field producing from eight wells with three water injectors to FPSO Brasil, brought in to fill the void left vacant with the P-36 tragedy. This second phase will increase the well count to 20 producers and 10 injectors when brought onstream in early 2007. Once all the wells are tied in, FPSO Brasil will then depart the field, which is expected to occur sometime the following year.

Work has now begun on the next phase of the development, Module 2. In early June Petrobras awarded Jurong Shipyard, which has performed six floater conversions for the company since 1997, the $628 million EPC contract for the conversion of the 280,000dwt VLCC Barao De Mauá to an FPSO, P54. The vessel will have capacity for 180,000b/d of oil, 6 million m3/d of gas and 39,000m3/d of water injection.

Production will come from 13 wells and eight water injectors all connected through flexible risers via an external portside balcony with export sent through a 10in flexible riser connected to the portside. Additionally the unit will be moored in 4300ft of water using Petrobras' DICAS spread mooring system with 20 miles composed of chain/ polyester/chain segments.

Work began on the vessel last month and is expected to last 38 months. The work is taking place in both Singapore and at the company's yard outside of Rio similar to the plan in use for P-50 being completed for Albacore Leste.

FMC has won the order to supply subsea production equipment for the job that includes manifolds, production controls and associated equipment, while the installation contract is expected to be awarded shortly. A further two modules are being studied for the field for the future. OE

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