Statoil has submitted a plan of development (PoD) for the Peregrino phase two project, offshore Brazil.
The $3.5bn project includes a new well head platform and drilling rig (Platform C). It adds around 250 million barrels in recoverable resources to Peregrino field.
The plan was submitted to the National Agency of Petroleum, Natural Gas and Biofuels (ANP) in Rio de Janeiro.
Phase two will include the extension of the economic life of the Peregrino field in Campos Basin.
It will improve the Peregrino field’s output by increasing the number of production wells from a new area (Peregrino Southwest), which is not reachable with the existing platforms.
A total of 21 wells, 15 oil producers and six water injectors are proposed to be drilled in the second phase.
Statoil senior vice-president and Brazil country manager Pål Eitrheim said: "Over its lifetime, the project will generate several positive effects for Statoil’s supply chain and substantial tax incomes for Brazil.
"Peregrino Phase II will strengthen our position in the country and reinforce our long-term commitment for the development of Brazil."
The Peregrino field has produced over 90 million barrels of oil since April 2011.
Statoil said based on the existing plan, the second phase is expected to begin production by the end of the decade. However, the company plans to make adjustments to the schedule if required.
Image: Phase II solution with Platform C in the foreground. Photo: courtesy of Statoil.