Peregrino

Location and Geology

The Peregrino oil field is located in the Campos Basin, approximately 85 kilometers offshore from the coast of Rio de Janeiro, Brazil. It is situated in the BM-C-7 and BM-C-47 licenses at a water depth of 100 meters.

Discovery and Ownership

The Peregrino field was discovered in 1994. The field is currently operated by Equinor (formerly Statoil), which holds a 60% interest, while the remaining 40% stake is held by China's state-owned Sinochem Corporation. Sinochem acquired its 40% interest in May 2010 for approximately $3.07 billion.

Field Development

The development of the Peregrino field is planned in multiple phases:

Phase I

• The first phase of the development commenced production in April 2011.
• It involves two fixed wellhead and drilling platforms, Platform A and Platform B.
• A total of 39 production wells and seven injection wells were drilled during this phase.
• The wells are supported by electric submersible pumps to extract heavy oil.
• The wellstream flows from the wellhead platforms to the Peregrino FPSO for processing through subsea pipelines.

Phase II

• The Phase II development was sanctioned by Equinor in December 2014 and approved by Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP) in September 2016.
• This phase includes a new wellhead and drilling platform, Platform C, located in the south-west area of the field.
• Platform C is connected to the existing Peregrino FPSO and includes 15 production wells and six water injector wells.
• The platform was installed in January 2020, and the hook-up and commissioning works were completed, with the first oil production from Platform C starting in 2022.
• Phase II aims to access an additional 250 million barrels of oil, extending the field's life until 2040 and maintaining a production plateau of up to 100,000 barrels per day (bpd).

Infrastructure

Platforms

• Platform A and B: These are eight-legged jacket structures with foundation piles, well slot conductors, deck structures, equipment, and systems. They were installed in 2009 and 2010, respectively.
• Platform C: This platform, part of Phase II, is also an eight-legged jacket structure, 135 meters tall, and includes drilling facilities, utilities, power generation, living quarters, and a helideck. It is located in the south-west area of the field and was installed in January 2020.

FPSO

• The Peregrino FPSO was developed by converting a very large crude carrier (VLCC) named Maersk Nova.
• It has a production capacity of up to 100,000 bpd and a storage capacity of approximately 1.6 million barrels of oil.
• The FPSO processes the oil, which is then stored and later pumped to shuttle tankers. The gas produced is used for power generation.
• The FPSO was initially owned and operated by Maersk, but Equinor and Sinochem acquired it in July 2012 for £764 million ($1.2 billion).

Production and Reserves

• The Peregrino field is estimated to have recoverable reserves ranging from 300 million to 600 million barrels of heavy oil.
• Phase I has produced over 210 million barrels of oil since its startup in 2011.
• Phase II is expected to add approximately 250 million barrels of recoverable resources, extending the field's life until 2040.

Environmental and Operational Efficiencies

• The Phase II development includes switching from diesel to gas for power generation on Platform C, which is expected to avoid 100,000 metric tons per year of CO2 emissions and reduce operational costs and logistics complexities.

Contractors and Contracts

• Several contractors have been involved in the project, including:
  • Maersk FPSOs: Developed the FPSO.
  • McDermott International: Engineered, procured, and constructed the topside modules of the FPSO.
  • Keppel: Converted the FPSO.
  • Subsea 7: Supplied and installed flexible risers and thermally insulated pipelines.
  • FMC Technologies: Manufactured and installed surface wellheads and surface production trees.
  • Wood Group: Provided maintenance and support services for the field’s platforms.
  • ABB: Main automation and electrical contractor for the FPSO, wellhead platforms, and submersible pumps.

Milestones

• 1994: The Peregrino field was discovered.
• 2007: Statoil submitted a field development plan to the regulatory agency Agencia Nacional do Petroleo, which was approved the same year.
• 2010: Statoil sold a 40% stake in the field to Sinochem.
• 2011: First oil production started in April.
• 2012: Equinor and Sinochem acquired the Peregrino FPSO from Maersk.
• 2014: Phase II was sanctioned by Equinor.
• 2016: Phase II received approval from ANP.
• 2020: Installation of Platform C was completed.
• 2022: First oil production from Platform C started.