CHEVRON has decided to push ahead with the Petrobras-operated Papa Terra deepwater project offshore Brazil, for which the capital cost is an estimated $5.2billion.
Chevron vice-chairman George Kirkland said on January 27: “This decision confirms our commitment to developing new opportunities in an important basin and adds to our strong queue of major capital projects.”
Located some 110km offshore in 1,190m (3,900ft) of water, Papa Terra will be a heavy oil subsea development tied back to floating infrastructure and located on block BC-20 of the southern Campos Basin. It will feature the first tension-leg well platform in Brazil. It will be connected to a floating production, storage and offloading vessel (FPSO). The completed facility will be capable of producing up to 140,000 barrels per day of crude from the estimated 380million barrels of recoverable oil reserves. First commercial oil is expected in 2013.
“When completed, the Papa Terra project will represent Chevron’s largest investment in Brazil to date and is expected to grow the company’s production capacity in the country which was established with the 2009 start-up of the Frade project,” said Ali Moshiri, who is president of Chevron – Africa and Latin America.
Petrobras operates block BC-20 and Papa Terra with a 62.5% interest. Chevron holds the remaining 37.5%.
Chevron also holds a 30% interest in the Maromba field, where development plans are in early gestation. Additionally, it holds a 20% stake in block BS-4 and continues to evaluate development plans to commercialise the Atlanta and Oliva discoveries.