Peregrino Phase Two Development, Campos Basin, Brazil

Peregrino Oil Field

Phe Peregrino oil field is located in licenses BM-C-7 and BM-C-47, approximately 85km offshore Brazil, in the Campos basin, in water depths of 100m. The Peregrino phase two development is proposed by Statoil to increase the economic life and add approximately 250 million barrels in recoverable resources to the Peregrino field.

"The second phase is expected to be developed at a cost of $3.5bn and will start production by the end of 2020."

Statoil and Sinochem are joint field owners with Statoil being the operator with a 60% interest in the asset. Peregrino is Statoil's biggest operated oil field outside Norway and has a production capacity of 100,000bpd. Concession period of the field extends up to 2040.

A plan of development for Peregrino Phase Two was submitted to Brazil's National Agency of Petroleum, Natural Gas and Biofuels (ANP) on 30 January 2015. The second phase is expected to be developed at a cost of $3.5bn, and will start production by the end of 2020.

Discovery and reservoir details

The Peregrino field was discovered in 1994 and the phase one development plan was approved in 2007 by Brazilian authorities.

Phase two involves the development of the BM-C-47 block that consists of C-M-529 and C-M-530 sub-blocks, and BM-C-7 block, which was declared commercially viable in 2013 after drilling the 3-Stat-8-Rjs appraisal well in the Peregrino South discovery.

The appraisal well encountered 85m of high-quality, oil-filled sandstone reservoir present in the carapebus formation. The well experienced a net pay of more than 70%.

Peregrino Phase Two development details

The second phase involves the Peregrino south-west area, which is not accessible by the existing A and B platforms. Its development plan involves increasing the number of production wells in the new area by drilling 15 oil producers and six water injectors.

A new drilling centre, WHP-C, will be installed in water depths of 120m for drilling the production and injection wells.

The field will be developed using horizontal production wells with artificial lift that will be provided by subsurface down-hole electric submersible pumps (ESP). Multiphase export booster pumps will be installed to pump oil, gas and water that will be carried by export pipelines to the existing floating production, storage and offloading (FPSO) unit for processing. Produced water will be returned after the separation process to the WHP-C for reinjection.

Facilities available at the WHP-C will include drilling facilities, utilities, power generation, living quarters and helideck.

Details of Peregrino Phase One

The first phase of development included two fixed drilling and wellhead platforms along with an FPSO unit. A total of 40 producer wells were drilled using advanced horizontal well technology. Produced liquids are transferred from the well head platforms to the FPSO for processing. The field started production in April 2011.

Key players involved

WorleyParsons was awarded an engineering and procurement management (EPma) contract, which will be executed by its offices in Europe and CNEC WorleyParsons in Brazil. The scope of work includes engineering, procurement, and management assistance.

IKM Ocean Design was selected to perform SURF and a concept and FEED study. Spectrum was subcontracted by WorleyParsons to conduct project studies, including an 'initial concept noise and vibration study'.

KCA Deutag's rig design and engineering subsidiary, RDS, was contracted to perform FEED for the phase two development. The work will be performed from RDS' London office.

Heerema Fabrication Group is responsible for the procurement and construction of a new jacket for the Peregrino phase two development project.