Tupi

Tupi Oil Field Profile

Location and Geology

• The Tupi oil field is located in the Santos Basin, approximately 250 kilometers (160 miles) off the coast of Rio de Janeiro, Brazil.
• It is part of a larger oil province that crosses the Espirito Santo, Campos, and Santos basins, but specifically lies within the Santos Basin.
• The field is characterized by its position in the pre-salt layer, beneath a massive salt layer that can be up to 2,000 meters (6,600 feet) thick. The hydrocarbons are trapped in rocks beneath this salt layer, at depths of around 4,000 to 5,000 meters below the ocean floor.

Discovery and History

• The Tupi oil field was discovered in October 2006 by BG Group, although Petrobras is the operator.
• The discovery was hailed as the Western Hemisphere's largest oil discovery in 30 years and was initially named Tupi, later renamed Lula in 2010, and then reverted back to Tupi following a court order in 2020.

Ownership and Partners

• The field is operated by Petrobras, which holds a 65% interest. The other partners are BG Group (now part of Royal Dutch Shell) with 25%, and Galp Energia with 10%.

Reserves and Production

• The Tupi field is estimated to contain between 5 to 8 billion barrels of recoverable light oil and natural gas. This discovery significantly boosted Brazil's oil and gas reserves, potentially increasing them by more than 50%.
• As of 2020, the field had produced over 1.3 billion barrels of oil equivalent (BOE) since production began in 2009. The total proven oil and gas reserves are approximately 10 billion BOE, representing about 40% of Brazil’s total reserves in 2019.
• The crude oil is of intermediate gravity with a specific gravity of around 0.88 and is considered sweet due to its low sulfur content (less than 0.7% sulfur by weight).

Development and Production Phases

• The development of the Tupi field is being carried out in two phases. The first phase involved testing and gathering information about future production systems, which was expected to end by 2012.
• The second phase, starting from 2012, includes the installation of production units. By 2017, ten production units with 20 producing wells and injectors were planned. Post-2017, new technologies such as dry completion units are being employed to enhance recovery.
• By 2020, the field was producing up to 922,000 barrels per day and 1.48 billion cubic feet of gas. Full field development may include up to 300 producing and injector wells, with total gross oil production potentially reaching 1,000,000 barrels per day.

Infrastructure and Technology

• The production is supported by several Floating Production, Storage, and Offloading (FPSO) units. The first FPSO, Cidade de Sao Vicente, was installed in 2008 with a capacity to produce 15,000 barrels per day.
• As of 2022, nine production units have been installed, with a combined capacity to process up to 1.3 million barrels of oil and 56 million cubic meters of natural gas daily. The use of replicant FPSO units allows for high standardization and optimization of engineering works.
• Transocean is the drilling contractor, while Schlumberger and Halliburton provide oil services and equipment. Technip supplies infield lines, including risers and flowlines for the project.

Challenges and Innovations

• The development of the Tupi field faced significant technical challenges due to the deep-water and pre-salt environment. Innovative technologies and adaptations were necessary to overcome these challenges, including the use of new drilling projects and reservoir management methodologies.
• The salt layer at this depth acts like sludge with unknown physical properties, making the construction of effective well-bores difficult. New production technologies have been developed to address these issues.

Economic and Strategic Impact

• The Tupi field is estimated to cost between $50 billion and $100 billion to fully develop, due to the complexity of the geological formation and the need for advanced technologies.
• The discovery and development of the Tupi field have significantly transformed Brazil into a major oil-producing nation, with the field contributing substantially to the country's oil and gas reserves and production.

Environmental and Regulatory Aspects

• The field's development involves integrated natural gas export infrastructure, with production units connected to a subsea pipeline grid. This infrastructure helps in monetizing the associated gas produced with the oil.
• The project has undergone various regulatory and legal processes, including a court order to revert the field's name back to Tupi from Lula in 2020.

Overall, the Tupi oil field is a pivotal project in Brazil's energy sector, marked by significant reserves, complex geology, and innovative technological solutions.