Libra

Location and Geology

The Libra oil field is located in the Santos Basin, approximately 230 kilometres (140 miles) off the coast of Rio de Janeiro, Brazil, and about 200 kilometres (124 miles) south of Rio de Janeiro. It is situated in the BM S11 block of the Santos basin, north of the Tupi oil field.

The field is characterized by its ultra-deepwater environment, with the oil reservoir lying under 2,000 metres (6,600 feet) of water and an additional 5,000 metres (16,000 feet) of sand, rock, and a shifting salt layer.

Discovery and History

The Libra oil field was discovered in May 2010, concurrently with the Franco prospect. The initial exploration well encountered challenges when it collapsed upon reaching an underwater salt bed in July 2010. However, a second layer of hydrocarbons was discovered in late December 2010.

Ownership and Consortium

The Libra oil field is owned by a consortium of five companies:

• Petrobras: 40%
• Royal Dutch Shell: 20%
• TotalEnergies: 20%
• China National Petroleum Corporation (CNPC): 10%
• China National Offshore Oil Corporation (CNOOC): 10%

Petrobras acts as the operator of the field. The production rights were awarded to this consortium on October 21, 2013, under a 35-year production sharing contract (PSC) managed by Pré-Sal Petróleo (PPSA).

Reserves and Production

The Libra oil field is estimated to contain recoverable resources ranging from 3.7 to 15 billion barrels of oil, with the most probable estimate being 7.9 billion barrels.

The field is expected to produce up to 1.4 million barrels of oil per day (mmbod) by 2021. The development plan includes nine floating production, storage, and offloading (FPSO) units linked to 92 production wells and 92 injection wells. The initial flow rate from each well is anticipated to be around 25,000 barrels per day.

Development and Infrastructure

The development of the Libra field involves several key infrastructure components:

• FPSOs: The first FPSO, Pioneiro de Libra, was converted from the Navion Norvegia shuttle tanker and has a production capacity of 50,000 barrels of oil per day and a gas compression capacity of four million cubic metres per day. It was deployed in May 2017. Future plans include the installation of additional FPSOs, such as the Libra 1 FPSO, which is expected to have a capacity of 150,000 barrels per day.
• Contractors: Key contractors involved include Odebrecht/Teekay for the supply of FPSOs, Jurong Shipyard for FPSO conversion, and Technip for the supply of flexible pipes.

Production Timeline

• Exploration and Discovery: May 2010
• Production Rights Awarded: October 21, 2013
• Drilling Begins: 2014
• First Oil Production: November 2017 from the early production system.

Economic and Financial Aspects

The development of the Libra field is a significant investment, with major financial commitments expected in the 2018-2019 period. The project involves detailed economic assessments, including net present value (NPV) and internal rate of return (IRR) analyses. The field's economic outcome is influenced by various factors such as development overview, geology, challenges, reserves, and production.

Challenges and Geology

The field's geology presents several challenges, including the deepwater environment and the complex layer of salt and rock above the oil reservoir. These conditions require advanced drilling and production technologies to manage the salt layer and ensure stable production.

Environmental and Regulatory Framework

The development of the Libra field is regulated by the Agência Nacional do Petróleo (ANP), Brazil's national oil agency. The project must comply with stringent environmental and safety regulations to ensure minimal impact on the marine environment.

In summary, the Libra oil field is one of the largest and most significant oil discoveries in recent years, with substantial reserves and production potential. It is a complex project requiring advanced technology and significant investment, managed by a consortium led by Petrobras.