Polvo

Polvo Oil Project Profile

Location and Geology

• The Polvo oil field is located in the Campos Basin, offshore Brazil, specifically on block BM-C-8. It is situated in approximately 104 meters (341 feet) of water.
• The reservoir is primarily of the Cretaceous Macae/Quissama formation, around 110 million years old, characterized by carbonate shoals. The porosity averages 19-24% and permeability is over 1 darcy.

Discovery and Development

• The Polvo field was discovered in 2004. Devon Energy won the area in the second bidding round held in 2000 and operated the field with a 60% stake, in partnership with South Korea’s SK Corp. holding the remaining 40%.
• The development of the Polvo discovery was completed within a rapid three-year discovery-to-production cycle time. Devon Energy invested $300 million in the project.

Infrastructure

• The project utilizes a Floating Production, Storage, and Offloading (FPSO) vessel. The FPSO Polvo was converted from the VLCC MT Appollo at Keppel FELS yard in Singapore and arrived in the Campos Basin in April 2007. It had a fluid processing capacity of 150,000 barrels per day (b/d), an oil processing capacity of 90,000 b/d, and a storage capacity of 1.6 million barrels. The FPSO also had a gas compression capacity of 7.5 million cubic feet per day (MMcf/d) and an offload capacity of 850,000 b/d.
• The FPSO was chartered for seven years with an option to extend for up to 15 years through a $271-million contract.

Production

• Initial production began in 2007, with the field expected to produce oil for about seven years in its first phase. During this period, oil production was forecasted to decline quickly while water production would rise. By 2009, oil was expected to account for half of the production, approximately 30,000 b/d of oil and 30,000 b/d of water.
• In later years, the field was operated by Prio (formerly PetroRio), which continued to develop the field. New wells, such as the POL-Q well, were drilled to boost output from the mature field, increasing production by about 15% with an initial production rate of approximately 1,000 b/d from the new well.

Recent Developments

• By 2021, Prio completed a tie-back project connecting the Polvo-A platform to the FPSO Bravo, which was previously operating at the Tubarao Martelo field. This project, known as the Phoenix Project, allowed for the demobilization of the FPSO Polvo and reduced operating costs by about $50 million per year. The FPSO Polvo was subsequently disconnected and is now headed to Oman.
• The tie-back project enabled better resource optimization, life extension of the fields, and reduced environmental impact by using the gas produced for energy generation.

Current Status

• As of 2022, Prio owns 100% of the Polvo-Tubarao Martelo production cluster and continues to operate the field. The company has been conducting well repairs, maintenance, and new drilling campaigns to maintain and increase production levels.
• The FPSO Polvo has been sold to BW Energy, which plans to refurbish and redeploy it for the Maromba development project, also located offshore Brazil. This project aims for first oil in 2025 with an expected peak production of 30-40,000 b/d.