Petróleo Brasileiro S.A. or Petrobras (PBR - Free Report) , through a consortium, recently finished the extended well test of the Mero field offshore Brazil, which is located in the block of Libra. The field is part of Santos Basin’s pre-salt layer. Production from Mero was conducted by the floating production storage and offloading (FPSO) vessel, Pioneiro de Libra that was launched last November. The prolific giant Libra field, with a water depth in the range of 1700-2400 meters, has high flow rates and pressures. Total depth in the field, which is rich with high carbon dioxide content, is almost 6000 meters.
Petrobras achieved 58,000 barrels of oil equivalent per day (BOED) of production from the ultra-deep waters in the course of the well test, marking a great result for the company. The technological attainment from the well test is crucial for the company, as it will enable the state-run energy major to unlock full potential of the oilfield. Moreover, knowledge from the same can be used in the ultra-deep water oil and gas industry all around the world. Notably, Petrobras has plans to deploy four final production systems in Libra in the future, with each system being capable of reaching a production capacity of 180,000 barrels of oil per day.
The company will dig a new gas injector well close to the producer well, post which the FPSO vessel will be moved to a new location. Following the completion of tests in the current well, FPSO Pioneiro de Libra will operate the Early Production Systems (EPS), moving on to the other wells in the field. The vessel — capable of re-injecting the gas produced from the wells — has a daily processing capacity of 50,000 barrels of oil along with 4 million cubic meters of gas. The technologies adapted in the vessel will enable the company to reduce the burning of extra gas, putting a check on CO2 emission.
Petrobras is the leader and has 40% stake in the consortium. Its partners in the project, namely Royal Dutch Shell plc (RDS.A - Free Report) , TOTAL S.A. (TOT - Free Report) CNPC and CNOOC Limited (CEO - Free Report) own respective interests of 20%, 20%, 10% and 10% in the consortium. The state-run Pré-Sal Petróleo, PPSA is the contract manager of the project. Notably, recoverable resources in the Libra oilfield are in the range of 7.9-15 billion barrels of oil. Production from the field is expected to hit the 1.4 million barrels of oil per day mark by 2021.
Price Performance and Zacks Rank
Headquartered in Rio de Janeiro, Petrobras has gained 35.2% year to date compared with 34.2% collective growth of its industry. The company currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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