[Brazil] Mero-3

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escveritas
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[Brazil] Mero-3

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Libra Consortium takes final investment decision on Mero-3 FPSO in Brazil's pre-salt

Aug 26, 2020

Shell announced today a final investment decision taken by the Libra Consortium, operated by Petrobras, to contract the Mero-3 floating production, storage and offloading (FPSO) vessel to be deployed at the Mero field within the offshore Santos Basin in Brazil.

Rio de Janeiro - This is the third production system to be deployed in the Mero field, with final investment decisions to contract the Mero-1 and Mero-2 FPSOs already taken. Each unit has a daily operational capacity rate of 180,000 barrels of oil equivalent, with production coming online over the next four years. The Pioneiro de Libra FPSO (50,000 barrels of oil equivalent/day) has been producing at Mero since 2017 and is a key source of information for the consortium to aid further development and productivity of the field, reservoir and wells.

"Mero-3 is the latest addition to our world-class asset portfolio in the Brazilian pre-salt," said Wael Sawan, Upstream Director, Royal Dutch Shell. "Shell is the largest foreign producer in Brazil, and we are proud to progress another valuable growth opportunity in the country to support the long-term strategy of our Upstream business."

As one of Shell's core Upstream themes, Deep Water is set to deliver resilient cash generation from high-value barrels. Shell's global deep-water business enjoys an attractive funnel of long-life, resilient development and exploration opportunities in Brazil, the US, Mexico, Nigeria, Malaysia, Mauritania, and the Western Black Sea.

Notes:
Shell Brasil Petroleo Ltda. (Shell) is a subsidiary of Royal Dutch Shell plc.
  • Mero field is part of the Libra Production Sharing Contract (PSC), signed in Dec 2013. Libra is located in the Santos basin, 170 km south of Rio de Janeiro in 2100 m of water.
  • The Libra Consortium, which operates production on the Libra block, is led by Petrobras – with a 40% stake – in partnership with Shell (20%); Total (20%); and the Chinese companies CNPC (10%) and CNOOC Limited (10%). The consortium also has the participation of the state-owned enterprise Pré-Sal Petróleo - PPSA, which operates as contract manager.
  • The Libra Consortium intends to carry out, for the first time in the Mero-3 area, a pilot test of the HISEP® - High Pressure Separation technology, developed and patented by Petrobras, which consists of subsea separation and reinjection, through the use of centrifugal pumps, of a large part of the CO2 produced along with the oil, allowing the oil processing plant to be relieved in the FPSO and consequently allowing oil production to increase. HISEP® is currently being defined and tested. After qualification, a pilot can be installed in Mero-3 to perform longer term tests and evaluate the technology.
  • Petrobras has signed a letter of intent with Malaysia International Shipping Corporation Berhad (MISC Berhad) for the chartering and provision of the FPSO to be installed at the Mero-3 development.
  • Shell has built a robust portfolio in Brazil. In addition to the assets already in development and operation, the company has several long-term development options in blocks acquired in recent ANP auctions.
escveritas
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Re: [Brazil] Mero-3

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BRAZIL: TOTAL LAUNCHES PHASE 3 ON THE GIANT MERO FIELD DEVELOPMENT

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Paris – Total and its partners have taken the investment decision for the third phase of the Mero project (Libra block), located deep offshore, 180 kilometers off the coast of Rio de Janeiro, in the prolific pre-salt area of the Santos Basin.

The Mero 3 FPSO1 will have a liquid treatment capacity of 180,000 barrels per day and is expected to start up by 2024. It follows investment decisions for Mero 1 (startup expected in 2021) and Mero 2 (startup expected in 2023) FPSOs, both of which have a liquid processing capacity of 180,000 barrels per day.

“The decision to launch Mero 3 marks a new milestone in the large-scale development of the vast oil resources of the Mero field – estimated at 3 to 4 billion barrels. It is in line with Total's growth strategy in Brazil’s deep-offshore, based on giant projects enabling production at competitive cost, resilient in the face of oil price volatility,” said Arnaud Breuillac, President Exploration & Production at Total. “The Mero project will contribute to the Group’s production from 2020 onwards, and we are targeting a production of 150,000 barrels per day in Brazil by 2025. ”

The Mero field has been in pre-production since 2017 with the 50,000-barrel-per-day Pioneiro de Libra FPSO. The Libra Consortium is operated by Petrobras (40%) as part of an international partnership including Total (20%), Shell Brasil (20%), CNOOC Limited (10%) and CNPC (10%). Pré-Sal Petróleo (PPSA) manages the Libra Production Sharing Contract.

Total in Brazil

Total has been present in Brazil for over 40 years and has more than 3,000 employees in the country. The Group operates in all segments: exploration and production, gas, renewable energies, lubricants, chemicals, and distribution.
Total Exploration & Production’s portfolio currently includes 24 blocks, with 10 operated. In 2019, the Group’s production in the country averaged 16,000 barrels of oil per day. In October 2019, a consortium led by Total was awarded Block C-M-541, located in the Campos Basin, in the 16th Bidding Round held by Brazil’s National Petroleum Agency (ANP).
In 2017, Total and Petrobras formed a Strategic Alliance encompassing exploration and production and gas, renewables and power activities. Through the Alliance, the two groups are implementing R&D projects on topics such as artificial intelligence leading to efficiency gains, with direct applications in Brazil. Total entered the fuel distribution market in Brazil with the acquisition in December 2018 of Grupo Zema’s distribution activities. Total thus owns a network of 280 service stations, as well as several storage facilities for petroleum products and ethanol.

About Total

Total is a broad energy Group, which produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
escveritas
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Re: [Brazil] Mero-3

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MISC MARKS ITS MAIDEN FORAY INTO MAJOR DEEP-WATER PROJECT IN LATIN AMERICA WITH MERO 3 FPSO

MISC Berhad (MISC) is pleased to announce its acceptance of Letter of Intent (LOI) from Petróleo Brasileiro S.A. (Petrobras) for the provision of a floating production storage and offloading facility (Mero 3 FPSO) located offshore Rio de Janeiro in the Libra block, Santos Basin, Brazil and operation and maintenance services during the charter phase of Mero 3 FPSO.

Pursuant to the LOI, the term of the charter is 22.5 years from the date of final acceptance of the Mero 3 FPSO by Petrobras. The Mero 3 FPSO is expected to commence operation in the first half of 2024.

MISC’s President & Group Chief Executive Officer, Mr. Yee Yang Chien said, “We would like to thank Petrobras for their confidence and trust in MISC for this major deep-water project in one of the main hotspots for FPSO in the world. It has been a two year journey in our march towards securing our first deep-water FPSO project in Brazil. This project is close to the hearts of many, especially the various teams across the Offshore Business division who deserve a thumbs up for all their dedication and commitment in making this day a reality for the Group.

Marked by this achievement, we are ushering in a new era for MISC by undertaking a complex project with a huge investment that will ultimately lay the foundation for future international projects. We are determined to deliver the best to our client for the Mero 3 FPSO project and as a Group, we look forward to contributing to the advancement of the energy sector in Latin America,” added Mr. Yee.

The Mero field is owned by the Libra Consortium. The Libra Consortium is led by Petrobras with a 40% interest in partnership with Shell Brasil Petróleo Ltda. (20%), Total E&P do Brasil Ltda. (20%), CNODC Brasil Petróleo e Gás Ltda. (10%), CNOOC Petroleum Brasil Ltda. (10%) and Empresa Brasileira de Administração de Petróleo e Gás Natural S.A. – Pré-Sal Petróleo S.A. (PPSA) (0%, as manager of the production sharing agreement).

Petrobras, headquartered in Rio de Janeiro, Brazil is an international energy company operating on an integrated basis and specialising in the oil, natural gas and energy industry.
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