Equinor and Exxon Begin Production at Bacalhau Field in Brazil

Equinor ASA and its partners, ExxonMobil Brasil and Petrogal Brasil, announced the start-up of production from the Bacalhau field in Brazil's Santos Basin on October 15. The deepwater project, located approximately 185 kilometers (115 miles) off the coast of São Paulo in water depths exceeding 2,000 meters, represents Equinor's largest international offshore development to date.

The Bacalhau field holds recoverable reserves of more than 1 billion barrels of oil equivalent (boe). Production is underway using a new Floating Production Storage and Offloading (FPSO) vessel, which has a production capacity of 220,000 barrels of oil per day (bpd). Phase one of the development includes 19 production and injection wells, which will be brought online sequentially. The company is positioned to provide a production ramp-up update in 2026.

According to Equinor, the successful commencement of operations strengthens the longevity of the company's oil and gas production portfolio. "The safe start-up of Bacalhau marks a major milestone for Equinor," said Anders Opedal, president and chief executive officer of Equinor, adding that the project combines scale, cost-efficiency, and lower carbon intensity.

The project is significant for the wider deepwater sector, demonstrating the use of combined-cycle gas turbines (CCGT) technology on the FPSO. Equinor stated this feature is designed to reduce the field’s environmental footprint, aiming for a carbon intensity of approximately nine kilograms of CO? per boe—a figure the company suggests is a competitive benchmark for deepwater production.

The development is operated by Equinor (40% stake), alongside ExxonMobil Brasil (40%), Petrogal Brasil (a joint venture between Galp and Sinopec) (20%), and Pré-sal Petróleo SA (PPSA), a Brazilian government entity. MODEC, the contractor for the FPSO, will operate the vessel for the initial phase, after which Equinor intends to take over operations for the remainder of the license period.

Philippe Mathieu, executive vice president for Exploration and Production International at Equinor, noted that Bacalhau is expected to be a major contributor toward Equinor’s target of generating more than five billion dollars of free cash flow by 2030 from its international assets. Furthermore, the company estimates the field's 30-year lifetime will contribute positively to Brazil's economy, potentially supporting 50,000 jobs. Brazil remains a core area for Equinor’s long-term growth strategy.

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The news of the start-up marks the culmination of a decade-long effort following the field's discovery by Petrobras in 2012, with Equinor taking over as operator in 2016. The project is the first pre-salt development in Brazil to be led by an international operator.

By Michael Kern for Oilprice.com

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