Final Investment Decision for Bacalhau Phase 1 in Brazil

June 12, 2021 | Oil & Gas | Energy Facts Staff Writer | 6min

Equinor (operator) and ExxonMobil, Petrogal Brasil and Pré-sal Petróleo SA (PPSA) have decided to develop phase one of the Bacalhau field in the Brazilian pre-salt Santos area. The investment is approximately 8 billion USD.

“This is an exciting day. 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. Good cooperation with partners, Brazilian authorities and suppliers has resulted in an investment decision for the Bacalhau field,” says Arne Sigve Nylund, Equinor’s executive vice president for Projects, Drilling and Procurement.

“Bacalhau is a globally competitive project with a break even below USD 35 in a key energy region. Estimated recoverable reserves for the first phase are more than one billion barrels of oil,” says Nylund.

The development plan was approved by the Brazilian National Agency of 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,” says Veronica Coelho, Equinor’s country manager in Brazil.

“The development of the Bacalhau field is a strategic investment in our global portfolio and has the potential to bring high returns for ExxonMobil, our partners and the Brazilian people,” says Juan Lessmann, Lead Country Manager for ExxonMobil in Brazil. “This project has progressed due to the strong collaboration between ExxonMobil, Equinor, Petrogal and the government.”

“Bacalhau is a world class offshore project, with low breakeven and low carbon emissions. This project will significantly contribute to Galp´s continued competitive upstream growth. The investment is a testament to Galp’s commitment to continue to grow in Brazil, and its success will have positive returns for all of Galp’s stakeholders in the country and beyond”, says Thore Kristiansen, Galp’s Upstream COO.

“The Bacalhau field is an accomplishment over high-complexity technical challenges, without losing track of the positive economic and social aspects. The Bacalhau field represents the great benefit that foreign companies can bring to the development of the pre-salt and Brazil. PPSA feels honored with this highly cooperative partnership, which promises to generate excellent results for the country,” says Eduardo Gerk, PPSA’s President Director

First oil is planned in 2024. Due to the COVID-19 pandemic and related uncertainties, project plans may be adjusted in response to health and safety restrictions.