Operation Completed Safely, Without Harming Staff or Environment

Conductor Installation Services (CIS), an Acteon company that provides hammer services to install conductors and drive piles, has successfully installed directional conductors to form the basis of two new production wells as part of a major project offshore Australia.

Although CIS has installed directional conductors for numerous operators around the world, the recent operation was the first time that the company had installed them for this particular operator. “Because the project plays such a vital role in the supply of gas to Australians, we are acutely aware of how important it is that each and every phase of construction is completed safely, with attention to detail and sensitivity to the environment,” said Andy Penman, Group Managing Director of CIS. “We are extremely pleased that this inaugural operation for this operator was a success.”

To ensure that the operation would be executed successfully, it was critical that the conductors be properly positioned before being driven into the seabed. CIS engineers carefully assessed the angles required so that the conductors would be appropriately offset. The company also produced three customized deviated drive shoes necessary to drive the conductors: two for the wells and one as a back-up. The directional drive shoes were then welded onto the conductor pup joints at the CIS Asia Pacific Region base in Singapore. Once this was completed, they were transported to Australia.

Working from the Sea Drill West Telesto jack up rig, CIS used a 150 kJ hydraulic hammer to install the conductors safely, driving them approximately 126 meters subsea and a further 117 meters below the mudline to their respective target depths. The total length of each conductor extended 243 meters.

The platform is live, so CIS chose to use a cold cutter system to cut the conductors to the correct height and the required bevel in order to prepare them for receiving the respective wellheads. By doing so, the cutting process was executed safely in a potentially explosive gas environment. CIS completed the entire offshore operation in three days.

The range of services provided by CIS supports the Acteon Group’s commitment to defining subsea services across a range of interconnected disciplines. The company is an active member of Acteon’s Seabed Foundation Technologies.

Learn more at www.acteon.com.

Aquatic Engineering and Construction Ltd, an Acteon company, has been awarded a multi-million pound contract on the $10 billion Moho Nord subsea project, off the coast of the Republic of Congo, West Africa. The contract was awarded by a UK-based subcontractor working for Total E&P Congo. Aquatic’s ten-month campaign portion will mobilize in October 2015.

Aquatic, the global partner for complete flex-lay solutions, will supply reel drive systems, together with a team of supervisors and technicians. They will provide the technical expertise and support to operate the equipment hired for the duration of the operation. Aquatic will be instrumental in the installation of 23 km of subsea flexible pipes and 50 km of umbilicals.

The Moho Nord subsea deepwater offshore project is located approximately 75 km off the coast of Pointe Noire and is the latest project being developed in the Moho-Bilondo License. Since 2013, three other Acteon companies (2H Offshore, SRP and UTEC Survey) have been awarded work on the Moho Nord subsea project. Each Acteon group operating company functions as a discrete business, while complementing sister companies to add value for the customer.

Martin Charles, Aquatic’s managing director, said, “This project is the most significant for Aquatic to date, and affords us the opportunity to forge a closer relationship with our customer in a new geographical location, while levering support from other Acteon Group operating companies. Our people and equipment will work in close partnership with our customer to deliver the project safely and on time, where output is expected to achieve 140,000 barrels of oil equivalent per day by 2017.”

First Subsea has successfully completed the installation of bend stiffener connections for gas lift and production risers, power cables and umbilicals, for the Goliat FPSO in the Norwegian Barents Sea. Operated by ENI Norge AS, the Goliat FPSO is the first offshore oil development in Norway's Arctic region, in the Barents Sea.

In total the Goliat FPSO features 11 Type II bend stiffener connections (BSC) at present, with a further 10 receptacle I-tubes pre-installed within the base of the vessel, enabling more tie-backs to be added as field production increases. The Type II BSC was selected for the Goliat tie-backs because the receptacle has no moving parts, enabling a simpler riser, umbilical or cable connection.

The First Subsea Type II BSC comprises a ball and taper connector attached to a bend stiffener, which is pulled into a pre-machined I-tube. The connector is self-energising and self-aligning, and features First Subsea’s Automatic Release Clamp (ARC) enabling both diverless and ROVless bend stiffener connections.

A new Wood Mackenzie study commissioned by the American Petroleum Institute finds that pro-development regulations for oil and natural gas development in the United States could dramatically improve the nation’s economic prospects for the foreseeable future. The study contends that nationally, by 2035, pro energy policies could yield an additional:

What could these findings mean to Florida? In the blog post included below, online on API’s blog “EnergyTomorrow.org,” we explore the oil and natural gas industry’s intrinsic value to Florida and detail how allowing crude oil exports can bode well for Floridians.

Energizing Florida

Our series highlighting the economic and jobs impact of energy in each of the 50 states continues today with Florida. We started our focus on the state level with Virginia on June 29. All information covered in this series can be found online here, arranged on an interactive map of the United States. State-specific information across the country will be populated on this map as the series continues.

As we can see with Florida, the energy impacts of the states individually combine to form energy’s national economic and jobs picture: 9.8 million jobs supported and $1.2 trillion in value added.

Click here to bring up a two-page snapshot of energy’s benefits to Florida.

The top-line numbers for Florida: more than 286,000 jobs supported statewide, according to a PwC study issued in 2013; over $23 billion added to the state economy; $13 billion contributed to the state’s labor income.

Page 2 of the document highlights the promising economic opportunities for Floridians if crude oil exports are allowed. If federal restrictions on U.S. crude exports are lifted Florida could add up to 10,736 jobs and more than one billion dollars to the state economy in 2020.

We’ve now seen reports -- from Columbia University, IHS, ICF, Brookings, the Aspen Institute, the Government Accountability Office, the Congressional Budget Office, the Energy Information Administration (EIA) and others – all pointing to the same conclusions: Blocking trade in crude oil harms consumers, it harms the economy, and it undermines America’s role as a global leader.

Crude oil exports would put downward pressure on crude on U.S. gasoline prices. U.S. weighted average petroleum product prices are expected to decline as much as 2.3 cents per gallon 2015–2035 when U.S. crude exports are allowed. The greatest potential annual decline is 3.8 cents per gallon in 2017. These price decreases for gasoline, heating oil and diesel could save American consumers up to $5.8 billion per year, on average, over the 2015–2035 period.

When added up across all of the states that can benefit from exports, nationally, LNG and crude exports could significantly reduce our trade deficit, increase government revenues, grow the economy, and support millions of U.S. jobs in engineering, manufacturing, construction, and facility operations.

Energy is critically important to Florida, serving as a key engine for the state economy – expanding job opportunities and offering the hope of prosperity to individual Floridians and their families.

The future benefits of energy for Florida – and the rest of the country – largely depend on national decisions on the country’s energy path. A new Wood Mackenzie study contrasts the benefits that a set of pro-development policies could have on energy supplies, jobs, the economy and American households with the likely negative effects on energy of regulatory constrained policies. The key comparisons are found on the first page of the linked document.

Energy is essential for all facets of our daily lives, from powering national, state and local economies to powering the family vehicle. Safe, responsible development of domestic oil and natural gas resources is linked to individual prosperity, energy security and basic liberties.

Songa Offshore has taken delivery of Songa Endurance from Daewoo Shipbuilding & Marine Engineering (DSME) in Korea.

Songa Endurance will shortly depart South Korea en route to Norway for commencement of an eight-year drilling contract with Statoil, with first assignment on the Troll Field on the Norwegian continental shelf. The voyage to Norway will take place with tow-assist and the rig will arrive with all third party equipment installed and ready for final acceptance testing. Commencement of drilling operations is expected to take place around year-end.

Songa Endurance is a sixth generation, high specification, harsh environment, midwater rig designed for efficient year around drilling, completion, testing and intervention operations in water depths up to 500 meters. The rig is certified DP3 and is equipped with a "state-of-the-art" drill-floor and an efficient layout with improved safety and working environment features.

Songa Endurance is the second rig in a series of four Category D rigs specifically built for and contracted to Statoil.

The sharp fall in oil prices has resulted in intensified competition within the offshore oil and gas industry and the prevailing market situation confirms a continued uncertainty ahead. The market was quick to re-evaluate its processes and budgets, redirecting its primary focus to cutting costs, adding value and increasing efficiency.

InterMoor Inc., an Acteon company, provided Anadarko Petroleum Corporation with rapid hook-up services for their Heidelberg truss spar in the deepwater Gulf of Mexico after stepping in at short notice for another contractor. InterMoor’s extensive offshore mooring experience enabled it to adapt its procedures in a short amount of time, to safely accomplish the job quickly and efficiently, and to ensure the new production facility was safely secured in case of a storm.

The company hooked up the 80,000 bbl/d spar to three mooring lines in Green Canyon block 860, offshore Louisiana, at a water depth of 5,300 ft (1600 m). The project’s original contractor then resumed the job and completed the remaining six mooring lines along with the completion of the spar installation.

InterMoor initiated the engineering work in March 2015, began offshore work in early June and completed its part of the hook-up in July.

Todd Veselis, manager of projects, InterMoor, said, “Our client required a high level of responsiveness to ensure the project remained on schedule. Our extensive experience in mooring all types of floating oil and natural gas facilities and our ability to adapt our previous procedures in just a month meant we could mobilize vessels quickly and efficiently, while assuring safety in execution.”

InterMoor mobilized five vessels from Fourchon, Louisiana, USA, and provided crews for each. This involved more than 40 InterMoor staff on two tugs and three anchor-handling vessels. The Kirt Chouest and the Dino Chouest were the main anchor-handling vessels and a third acted as a support vessel between them and the platform. These vessels, as well as McDermott’s DB 50, maintained station keeping for the spar and completed the hook-up operations to get the spar ‘storm safe.’

Previously, InterMoor had fabricated some suction piles for the Heidelberg project in February 2015 and provided representatives during the installation of the Lucius spar, which is identical to the Heidelberg, in 2013.

Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) has announced the award of a contract with a value of approximately USD 500 million by BP, and partner DEA, for the development of the Taurus and Libra subsea fields offshore Alexandria, Egypt. The contract is the first phase of Egypt's West Nile Delta project where field development will be at depths of approximately 800 meters.

The first piece of the Johan Sverdrup development has now been completed and installed on the field in the North Sea.

It was Heerema Marine Contractors’ crane vessel “Thialf” that completed the installation of the 280-tonne pre-drilling template on the Johan Sverdrup field.

“We have completed and installed the first piece of one of the largest industrial projects in Europe. We still have a long journey ahead in the Johan Sverdrup development, but we are very pleased that we have completed and installed the subsea template without serious incidents and according to plan. This is a good start according to the required quality and precision standards for successful implementation of the development,” says Kjetel Digre, head of the Johan Sverdrup field development.

The pre-drilling template is 32 meters long and 10 meters high.

Heerema Marine Contractors were responsible for design, building and installing the pre-drilling template.

The 32-meter-long, 10-meter-high pre-drilling template is one of the smallest building blocks of the Johan Sverdrup development but plays a key role in the project.

The pre-drilling template contains eight well slots that allow production wells to be pre-drilled before the drilling platform is installed in 2018 and production starts at Johan Sverdrup in late 2019.

Pre-drilling allows the production capacity to be utilized as efficiently as possible when Johan Sverdrup has come on stream. Pre-drilling and the pre-drilling template thus help capture maximum value for the partners and the whole society over the next 50 years.

The «Deepsea Atlantic» drilling rig will start pre-drilling on the Johan Sverdrup field through the pre-drilling template from March 2016.

“The activity level for the Johan Sverdrup project will be substantially increased as new steps are taken in the field development. We are working closely with the suppliers in the platform pre-engineering process. We have awarded several main contracts and utility packages worth more than NOK 40 billion so far. More contracts will be awarded during the autumn. We have also started building the first platform jacket at Kværner Verdal. So far, the Johan Sverdrup development is on track,” says Digre.

The Johan Sverdrup partnership consists of Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil. The partnership has recommended Statoil as the operator of all field phases.

Wood Group has received a letter of award for a new five year, US$ multi-million contract with Shell, to provide services to four onshore oil fields in Gabon.

Wood Group PSN (WGPSN) will deliver integrated engineering, construction, maintenance and industrial services to the Rabi, Gamba, Toucan and Koula assets.

Effective immediately, the award represents WGPSN’s first major contract in Gabon and will provide employment opportunities for around 200 Gabonese nationals.

Wood Group has more than 40 years of experience working with Shell globally.

James Crawford, WGPSN’s UK and Africa managing director, said: “This is the first time Shell Gabon has awarded a contract of this type that integrates engineering, construction and maintenance services. This new approach, which is also a first in the Gabon oil and gas sector, enables us to work collaboratively with Shell to optimise cost efficiency and production across these assets. Our work on this project will also support our client in creating a sustainable asset base in Gabon.

“Africa is a key region for our future growth strategy. We are proud that the majority of the employees on the contract are Gabonese, reflecting our commitment to prioritising the hiring and development of local people in the communities where we operate. We are also focused on transferring our technical expertise, developed in other basins, to enhance capability in this region.”

Wood Group has been awarded a three-year offshore engineering blanket order by PEMEX Procurement International for field development in Mexico’s Gulf of Mexico waters. The agreement, valued at up to US$28 million, encompasses deepwater and complex shallow water concept and basic engineering, and owner engineer services.

Work will be performed by Wood Group Kenny and Wood Group Mustang and will comprise field development planning and engineering of topsides facilities; subsea umbilicals, risers and flowlines (SURF); and floating systems. Services will be performed for the following potential oil and gas field developments:

“Mexico’s energy reform is leading to significant development of the country’s oil & gas industry and Wood Group offers PEMEX unparalleled Gulf of Mexico expertise,” stated Robin Watson, chief operating officer of Wood Group. “Wood Group Mustang and Wood Group Kenny are the leaders in Gulf of Mexico facilities design and SURF, respectively. Their integrated solution will include best practices for offshore and complex facilities that will help to expand Mexico’s offshore capabilities.”

BG Group (LSE: BG.L), a world leader in exploration and LNG has announced first oil from the Cidade de Itaguaí floating, production, storage and offloading (FPSO) vessel, the sixth unit to start production across the Group's significant discoveries in the Santos Basin, offshore Brazil. The FPSO will produce from the Iracema North area of the Lula field in the Petrobras-operated BM-S-11 block.

Anchored 240 km off the coast of Rio de Janeiro, the Cidade de Itaguaí is approximately 2 220 meters above the ocean floor. This is the second leased FPSO deployed on the Iracema development and will double the gross production capacity to 300 thousand barrels of oil per day and 16 million cubic meters of natural gas per day from the area. The FPSO will also be able to store 1.6 million barrels of oil.

BG Group has a 25% interest in Block BM-S-11 (Petróleo Brasileiro S.A., operator, 65% and Petrogal Brasil S.A., 10%). BG Group also has a 30% interest in Block BM-S-9 (Petróleo Brasileiro S.A., operator, 45% and Repsol Sinopec Brasil 25%).

Following the successful completion of a 3 year qualification program of subsea flowline for hydrocarbon service, PETRONAS has requested Airborne Oil & Gas to supply a TCP Flowline for a pilot project, intended to be installed later this year.

The scope includes the delivery of a 550 meters TCP Flowline, ancillaries, offshore installation, engineering and field support. The 6 inch ID TCP Flowline is to be installed in 30 meters water depth connecting two platforms located offshore Malaysia.

Datin Rashidah Karim, Head of Operational Technology of PETRONAS Carigali said, “At PETRONAS we recognize the potential for the use of Non-Metallic Pipe as a substitute for carbon steel under certain conditions and will embark on the world’s first offshore pilot having done extensive qualification of the material, installability and operability of the pipe. The TCP Flowline does not corrode, reducing the OPEX significantly. Furthermore, by close collaboration between the installation contractor, Airborne Oil & Gas and PETRONAS, adopting an integral design approach, a cost effective installation method has been developed that allows for a total project cost reduction while meeting PETRONAS’ requirements such as for instance on-bottom stability".

The lightweight TCP Flowline is supplied in long lengths, spooled on transport drums. Martin van Onna, Chief Commercial Officer: "This project marks the world’s first pilot for a TCP Flowline, and the beginning of a new phase in the relationship between PETRONAS and Airborne Oil & Gas. We are grateful for the support from PETRONAS during this important time in our development, in which we jointly completed the qualification, performed installation trials and demonstrated the capability of the TCP Flowline in this demanding environment, both technically and commercially."

"With this project, we now have commercial deliveries on all our Thermoplastic Composite Pipe products: Downlines and Dynamic Jumpers for well intervention, Static Jumpers and Spools for injection, and Flowlines for hydrocarbon service. The potential for Flowlines in particular is very large; we manufacture up to 7 inch ID TCP Flowline, replacing 8 inch nominal steel pipe as well as conventional flexible pipe. We manufacture these in lengths up to 3000 meters per spool, allowing fast installation by reel lay method, reducing installation cost significantly and with that the total project cost," said Martin.

Marking the fifth anniversary of the Macondo incident in the Gulf of Mexico, a summary of inquiries into the tragedy flags up key ways to prevent a repeat

Much has been done to reduce the risk of another major incident such as the Macondo tragedy, but more change is needed. This is a key message in a new summary by DNV GL of findings and recommendations by 21 major inquiries into the BP Deepwater Horizon drilling rig explosion and oil spill in the Gulf of Mexico in 2010. The inquiries were conducted by governmental, industry and independent organizations in the US, UK, Norway and the Republic of the Marshall Islands.

“We have carried out this review because no single investigation provides a full overview of the actions recommended to prevent another Macondo,” said Peter Bjerager, director for the Americas, DNV GL - Oil & Gas. “There will doubtless be further investigations, particularly around long-term environmental effects of the spill. The US Chemical Safety Board (CSB) intends to address organizational and human factors. Five years on though, it is timely to review key lessons and recommendations.”

Lessons learned

Broad subject headings for the recommendations from all 21 inquiries are summarized in the table to the right. Among technically-focused investigations, the US Justice Department commissioned a DNV GL forensic examination of the Deepwater Horizon rig’s blowout preventer (BOP) recovered from the seafloor. DNV GL made detailed recommendations[1] regarding BOP design and operation issues.

Among the most high profile studies, the US Deepwater Horizon Commission[2] and its chief counsel[3] included lessons learned for industry, government and energy policy. The Commission stressed how culture was a key factor for enhancing safety and discussed issues affecting BP, its contractors, and the industry in the Gulf of Mexico generally. The organization and response by US federal and state agencies, and the cooperation of BP and the whole industry, was commended by the national incident commander, Admiral Thad Allen.

In other nations, the Norwegian Oil and Gas Association (formerly OLF), led an inquiry for which DNV GL reviewed regulatory differences between the US and Norway. This concluded that the Norwegian Continental Shelf had robust legislation and safe operations.[4] It made 45 recommendations for improvements to prevention, intervention and response, and summarized those related to well control and response issues.

In the UK, the Health and Safety Laboratory (HSL) studied fire and explosion issues related to Macondo. HSL relied on key investigations elsewhere, mainly in the US, and found that recommendations from these generally matched those for offshore UK.[5]

The legacy

DNV GL’s summary of inquiries flags the legacy of reforms to reduce risk and improve occupational and process safety. “Many key recommendations have been adopted in one form or another,” Bjerager said. He cited the emergence of two new US regulatory entities: the Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Ocean Energy Management (BOEM). This has separated safety oversight from resource management. “The set-up now emphasizes goal-based safety and includes increased numbers of inspectors to boost presence offshore in both safety and environment.”

BSEE has issued new requirements for: drilling safety; BOP recertification; negative pressure tests; professional engineer sign-off on casing and cement; and for a compulsory estimate of worst-case blowout events.

The American Petroleum Institute (API) and the International Association of Drilling Contractors have worked on an interface requirement between rig lessees and drilling contractors. Several new API standards are available. SEMS I & II have been implemented with the new Center for Offshore Safety defining the protocols and approving third-party audit service providers.

BSEE has provided guidance on safety culture, and is working with another US federal agency to implement a confidential reporting system for offshore incidents and near misses. The Bureau has also established the Ocean Energy Safety Institute within Texas A&M University. This will research longer-term issues such as risk, reliability data, and the best available and safest technologies.

The US Coast Guard service has issued guidance on additional fire and explosion assessments that it would like to see introduced, and has highlighted safety culture issues. Two response consortia have been established in Houston (MWCC and Helix). The International Association of Oil and Gas Producers (formerly OGP) has set up consortia at four international locations to provide emergency response support. API and the Norwegian Technology Centre, which develops NORSOK standards, have updated standards for drilling and well control, and have made their safety standards freely available. “Detailed assessments of fire and explosion lessons from Macondo have been made and are finding their way into designs,” Bjerager added.

CSB investigated the BOP failure after DNV GL’s forensic examination. It concluded that regulations should be updated to identify critical parts of safety equipment and ensure that these all operate reliably. The co-chairs of the Deepwater Horizon Commission maintain the oscaction.org website to monitor progress on implementation of its recommendations, and issue annual progress reports. “Generally it concludes that industry and the executive branch of the US government have done a good job implementing recommendations, but US Congress lags behind,” said Bjerager.

Global response

There has been change elsewhere. The European Union (EU) is adopting a safety-case approach similar to that of the UK, for all EU offshore developments. Australia has expanded coverage of its regulator, the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), to address drilling and environmental impacts because of Montara and Macondo, and to move closer to the goal of having a single offshore regulator.

“The UK and Norway believe their goal-setting approaches were not challenged by Macondo, but that many detailed aspects of drilling safety needed enhancement. The UK Health and Safety Executive (HSE), Norway’s Petroleum Safety Authority and the International Association of Oil and Gas Producers are working on these issues,” Bjerager said. “Still, some important recommendations for the US regulatory system have yet to be adopted. The US appears not ready to adopt mandatory risk assessment with a risk target nor, at least as a partial step, to nominate safety-critical items with defined performance standards.” Download the report at: www.dnvgl.com/macondo.

During Offshore Europe, a panel of leading international industry experts will discuss the preconceived perceptions that students and graduates have of a career in oil and gas, and how they differ from the experiences of those operating in the sector.

Hosted by the Society of Petroleum Engineers (SPE) Aberdeen Section’s Young Professional Committee, the panel will take place during the final day of Offshore Europe, Friday 11 September, at the Aberdeen Exhibition and Conference Centre and aims to inspire the next generation to pursue a career in the oil and gas sector, whilst also motivating young professionals to consider new opportunities within the industry.

SPE President and director general of Statoil Mexico, Helge Hove Haldorsen, will lead the panel discussion. Joining him will be David White, senior technology adviser at Schlumberger, Rod Christie, CEO of subsea systems and drilling at GE Oil & Gas, Shona Cormack, vice-principal and pro-vice chancellor of Robert Gordon University, and Bob Greenwood, partner and head of oil and gas practice at Odgers Berndtson.

Shankar Bhukya, SPE Aberdeen Chairman, said: “The ever-changing nature of the oil and gas industry has been particularly palpable of late and it is important, more now than ever, that leading professionals come together to share with today’s students and graduates their experiences of the industry and the vast opportunities available.

“With continuous technological advancement and fields including enhanced oil recovery and decommissioning growing in importance each day, particularly in the UKCS, talented individuals are in high demand and there are still excellent career prospects out there for them. At SPE Aberdeen, we continue to look at new ways to engage and enthuse the next generation and this event represents a fantastic platform upon which to demonstrate the potential a career in oil and gas can offer.

“The pre-event online poll, as well as the question and answer section of the panel discussion offers delegates the chance to voice their opinions and have their concerns addressed by leading professionals who have already made their mark on the industry. Together, we can convey the message that the oil and gas industry is still thriving and should not be disregarded by the new generation. ”

SPE Aberdeen has developed an online poll to gather the opinions of students, graduates and young professionals. The results will be presented during the seminar and will form part of the discussion. If you would like to complete the poll please visit - https://www.surveymonkey.com/s/W99XVSB.

After just four years in production, the Peregrino field in the Campos basin offshore Brazil has passed a significant milestone, with 100 million barrels of oil produced since April 2011.

The Peregrino field includes two fixed drilling platforms (WHP A and WHP B), and the floating production and storage unit FPSO Peregrino.

The field, jointly owned by Statoil and Chinese Sinochem, achieved the milestone on August 2.

"We are pleased to have reached a major milestone in our Peregrino operations,” says Pål Eitrheim, country manager of Statoil Brazil.

“Peregrino demonstrates the power of possible, and we are proud to operate a project that is both exciting and challenging. These results reflect the professionalism of our people, and the application of technology developed by Statoil, in Brazil and elsewhere. We are constantly learning and we look forward to reaching new milestones as we continue to develop this large field”, he says.

According to a report published by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) in March 2015, Peregrino is Brazil's eighth largest field, and has the second heaviest oil ever produced in Brazil.

It is also the largest field operated by Statoil outside Norway and accounts for about 12% of its international production (around 720 thousand barrels per day).

The operation includes two fixed drilling platforms (WHP A and WHP B), and a floating production and storage unit (FPSO Peregrino), with a production capacity of 100,000 barrels per day. Statoil holds a 60% stake and is the operator of the field, while Sinochem holds the remaining 40%. With an excellent track record, Peregrino has achieved all production, efficiency, cost and safety targets in 2014.

In January this year, the development plan of Peregrino Phase II was submitted to ANP. With total estimated investments of USD 3.5 billion, the project involves a new drilling platform (WHP C) and will add about 250 million barrels in recoverable reserves to the Peregrino field. Phase II of the project will enable the extension of the economic life of Peregrino and is an important and strategic part of Statoil’s ambition to consolidate a strong position in Brazil.