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July 14, 2016

Report: Oliva field development to share FPSO cost with Atlanta project

The development of the Oliva offshore field is planned to be developed as a tie-back to the Atlanta FPSO in the Santos Basin, offshore Brazil, benefiting the Atlanta project, according to a report by GlobalData.

The development of the Oliva offshore field is planned to be developed as a tie-back to the Atlanta FPSO in the Santos Basin, offshore Brazil, benefiting the Atlanta project, according to a report by GlobalData.

Entitled Brazil Oliva Project Panorama – Oil and Gas Upstream Analysis Report, the report highlights that Oliva tie-back is expected to share the FPSO cost with the Atlanta project. However, a delay or cancellation in the Oliva development will result in a negative remaining net present value of Atlanta as the entire cost of the FPSO will then have to be supported by Atlanta alone.

"A second well has to be drilled in the next three years to assess reserves and productivity of the area."

Activity on the Oliva field has been idle since 1993 when a single well was drilled there. The field is awaiting appraisal with results expected in 2018. A second well has to be drilled in the next three years to assess reserves and productivity of the area.

The deepwater Oliva field needs to be developed as a tie-back as it requires specific technologies including sand control completion, a high-power artificial lift pumping system and specific flow assurance procedures. The crude from the Oliva field is of poor quality and its treatment requires a crude treatment system similar to the one installed at the Atlanta field.

The GlobalData report reveals that plans for the Oliva tie-back are scheduled for 2021 after production starts from Atlanta in 2016. A five-year contract for the FPSO was awarded to Teekay Offshore in 2014 at the rate of $50m a year.

The vessel is expected to be delivered in the second half of 2016 after undergoing modifications by Damen Shiprepair and Conversion.

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