Norway’s Equinor, ExxonMobil and Petrogal Brasil will pour $8 billion into the development of the Bacalhau field, a Brazilian deepwater oil field, Equinor announced on Tuesday.
"Bacalhau is the first greenfield development by an international operator in the pre-salt area and will create great value for Brazil, Equinor and partners," said Arne Sigve Nylund, Equinor’s executive vice president for projects, drilling and procurement.
Nylund said that Bacalhau is a globally competitive project with a break-even price of below $35 in a key energy region.
Estimated recoverable reserves for the first phase are more than one billion barrels of oil.
Equinor said that significant efforts have been made to reduce emissions from the production phase, including implementing a Combined Cycle Gas Turbine system to increase the energy efficiency of the power station.
"This gives an efficient electrical power production and flexible heat supply. Lifetime average carbon intensity is expected to be less than 9 kg per barrel produced, significantly lower than the global average of 17 kg per barrel. Work will continue through the lifetime of the field to reduce emissions and increase energy efficiency," the company explained.
The development plan was approved by the Brazilian National Agency for Petroleum, Natural Gas and Biofuels (ANP) in March 2021.
"Bacalhau is an important step towards the realization of our strategic ambition to deepen our presence in Brazil. It is also an important project for the country, as it represents significant investments, ripple effects in the supply chain and local job creation," said Veronica Coelho, Equinor’s country manager in Brazil.
Equinor and Exxon hold a 40% stake in Bacalhau, while Petrogal Brasil holds a 20% share.
By Murat Temizer