Petrobras Magazine

Print

Results in Nigeria

On site in Nigeria since 1999, where Petrobras has operated with partners in the deepwater exploration and production of oil in the Niger River Delta, the company is now beginning to see the results of years of teamwork. In July, it saw the the giant Agbami field, in which it has a 13% stake, come onstream. At the end of 2008 or the beginning of 2009, the first exploratory well will be drilled in block OPL 315, where Petrobras will be acting as the operator. Another giant field, Akpo, where the company holds a 16% stake, will start production in the first quarter of 2009. In 2013, the Egina field will go into production. After this, all the attention will be focused on Preowei, another field to come onstream in the same block as Akpo and Egina, the OML 130.

The Agbami field, in which Petrobras has a 13% stake, has already entered into production

“What we are seeing right now is the culmination of the work of almost a decade. Among various reasons, Petrobras started international operations because, as it was possible that a part of the Brazilian market might be lost due to the termination of the oil monopoly in Brazil, there was a need to expand the company’s exploratory frontiers. In addition, since Petrobras was already a market leader in deepwater exploration and production, it wanted to use the experience acquired to leverage business abroad, to take on projects that would provide a return in strong currency, and to gain recognition in areas in which the company was still unknown. After Petrobras began operating in Nigeria, dealing with reserves of light oil and reduced sulfur content, a product highly valued in the international market, there was a period when the company considered pulling out due to the high capital cost involved in continuing in Nigeria and to the political instability. But the company had confidence in the country and, even though oil was not found in the first two wells drilled in block OPL 324, Petrobras was not discouraged. Today, we are experiencing good results, which will be even better when the Akpo, Egina, Preowei, and maybe even other offshore fields in Nigeria come onstream,” summarizes the Petrobras executive manager for the International Business Area, Samir Awad, responsible for the Americas, Africa, and Eurasia.

Agbami

Located in block OML 127, the Agbami field, with reserves of 900 million barrels of light oil rated from 35° to 45° API, started production in July. When production peaks out, which is predicted to occur in late 2009, it will produce 250,000 bpd, of which about 32,500 bpd will be allotted to Petrobras on account of the company’s participation. In order to exploit this field, Petrobras and its partners, Chevron (68%), Statoil (19%), and the Nigerian companies NNPC and Famfa collaborated in developing the project for the construction of the biggest FPSO in the world in terms of liquids processing and ordered the construction of the production unit to be carried out in South Korea.

The Agbami FPSO will process 250,000 bpd, of which 32,500 bpd will be allotted to Petrobras

“The FPSO, anchored at a water depth of 1,350 meters, is 320 meters long, 60 meters wide, and 32 meters high. It has a 100-meter tower which houses its flare. The unit is able to process 250,000 bpd, 200,000 barrels of water per day, and 415 million cubic feet of gas per day – all of which will be used to supply local energy and well injection for optimizing the oil recovery factor. In addition, it can store up to 2.2 million barrels of oil and transfer up to one million barrels of oil per day,” explains the general manager of the Nigerian Petrobras Unit, Rudy Ferreira.

OPL 315

In block OPL 315, in which Petrobras acts as the operator with a 45% stake, the first exploratory well will be drilled in late 2008 or early 2009. Even though expectations about this block have been high since 2005, when it was acquiredin an auction, only after the first well is drilled will it be possible to establish targets for the future. Statoil holds a 45% stake in this block and the Nigerian company, Ask Petroleum, 10%.

The Akpo FPSO will have the capacity to produce 185,000 bpd

Akpo

The Akpo field, in block OPL 130, with reserves of 620 million barrels of condensate (ultra light oil) rated from 45° to 55° API and a production capacity of 185,000 bpd, should commence production in the first quarter of 2009. Another FPSO, also constructed in South Korea, is being taken to the location and should be anchored in the Niger River Delta in September 2008, at a water depth of 1.400 meters.

“The FPSO designated to operate in the Akpo field is 300 meters long, 61 meters wide, and 30 meters high. It has production capacity of 185,000 bpd. The Petrobras share of this production will be 16%, with the balance divided between the partner companies CNOOC (45%), Total (24%), and Sapetro (15%). Gas compression capacity for injection and for export is 15 million m³ per day, all of which belongs to the government and will be sent to the Bonny LNG plant,” Rudy explains.

The final destination of the field’s crude oil has yet to be decided. “The production may be shipped to Brazil for blending with Brazilian heavy oil, considering that the Nigerian refineries were designed to process light oil, or to the international market since condensate is highly valued abroad. Today, for example, Nigeria is the largest single oil exporter to Brazil,” emphasizes Samir Awad.

Egina e Preowei

Also in block OML 130, the Egina field, with reserves calculated at 550 million barrels of light oil, rated at 28° API, should go into production in 2013. Another FPSO, with a production capacity of 200,000 bpd, will be responsible for developing the field’s production. Of the total produced, 16% will belong to Petrobras, corresponding to the percentage of its stake in the block.

In the same block, the Preowei field, with reserves of 200 million barrels of light oil rated at 28° API, still does not have a definite date for the beginning of production, but this should occur sometime after 2013. Possibly, a pipeline will transport the production to the FPSO anchored in the Egina or Akpo fields, in the same block, for subsequent export.

Considering the total production of the Agbami and Akpo fields, which already in 2009 should total approximately 70,000 bpd, and other fields that will commence production later, the Petrobras Nigerian Business Unit will become one of the company’s largest production units abroad, if not the largest. This shows that Petrobras was correct in its decision to operate in Nigeria. And there still may be many other reasons to celebrate.