NEI-NO--828 NO9705280 ONS CONFERENCE 1996 27-30 AUGUST STAVANGER. NORWAY Paper no. J 1 Session: DEEP WATER Paper title: «The Campos Basin, Marlin and other deepwater fields» Speaker: Antonio Carlos de Agostini Petrobras, Brazil &S***™*** OF THIS DOCUMENT *9 WNUWTB) m DISCLAIMER Portions of tins document may be illegible In electronic image products. Images are produced from the best available original TT PETROBRAS ONS -96- OFFSHORE NORTHERN SEAS AUGUST27-30 Stavanger, Norway “THE CAMPOS BASIN, MARLIM and OTHER DEEPWATER FIELDS” Antonio Carlos S. de Agostini Member of the board, E & P Director PETROBRAS - Brazil J1 Abstract: The speech emphasizes the Brazilian deepwater production history driven with the usage of Floating Production Systems. As it flows from the first discoveries in the “shallow” part of the Campos Basin, through the Early Production Systems based on Floaters and the so called “120 meters deepwater” fixed production platforms in 1978, to the forecast of future discoveries in ultra-deep waters, highlighting the importance of offshore activity for PETROBRAS and Brazil. The development of the Marlim and other deepwater fields as well their features, using the Floating Production System, is presented. Discoveries already made in waters deeper than 2,000 meters are showed with potential prospective areas for exploration. The expected characteristics of these reservoirs and their fluids are also presented. The main accomplishments of the PETROBRAS PROCAP-2000 R&D Program are summarized. The technology trends, based on previous experience, as well as the future challenges to support the activities to be carried out in the ultra deep waters, are discussed. Key technology issues in deepwater exploitation scenario, such as horizontal and multilateral wells, high productivity wells, artificial lift in subsea wells, subsea equipment, flowlines and pipelines, produced fluid problems, floating production facility, subsea boosting and multiphase metering are also addressed. Finally, PETROBRAS ’ vision on what would the offshore production be like, when exploiting oil reservoirs of2,000 meter water depth, and beyond, is presented. INTRODUCTION Oil and gas activity in Brazil got started back in 1939. In nineteen 1968, the first offshore area was discovered. Peak production during this period was around 150,000 bpd. Production at this time was limited to onshore areas. Petrobras began its offshore production in 1973. It was in the Sergipe-Alagoas Basin. The water depth was around 30 m, quite a challenge for us at that time. Many other similar installations in the northern part of the country were then installed. We adopted the J1 existing solution that was to install a jacket and a deck with topside facilities. Jack-up drilling in cantilever or tender ship assisted drilling was applied. The process was very simple, and the production stream was sent to shore through 10 km long multiphase export lines. Campos Basin was discovered in 1974, through the Garoupa field and a new scenario was established. A new set of challenges were detected. The water depth was 120m, the distance to shore was more than 100 km and the production rate was around 7 times higher than in Brazil Northeast platforms. Campos Basin is currently the main petroleum province in Brazil. It is located offshore Rio de Janeiro State, on the Southeast region of the country. Its area covers 100 sq. km. ranging from 50 into 3,400 meters water depth . The first production system installed in this basin began its production in 1977 (figure 1). Today, nineteen years later, the overall production system comprising 15 fixed platforms and 13 floating systems distributed among 33 oil fields which account for the production of 560,000 bpd ( which stand for 68 % of the domestic production ) and 10 million daily cubic meters of gas ( which represent 40 % of Brazilian gas production ). The accumulated production has far overcome the one billion barrels of oil milestone. This production is handled and exported to shore through over 2,800 km of oil and gas pipeline networks (figure 2). In 1974, for the exploitation of the first reservoirs in Campos Basin, in waters up to 120 m, Petrobras used International technology already available. Fixed platforms were used in waters between 120 and 200 meters, considered deep at the time. That was for sure a tremendous change in what we have done before and certainly it was the first step to a new era of production facilities. Parallel to this development Petrobras used, in full extent, the successful combination of Wet Christmas Trees and FPS, as Early Production Systems. In the year 1984, a new reference depth was brought to the Company, with the discovery of Albacora Field, followed shortly after by Marlim and Barracuda Fields. These three fields, extends from water depth of 250 to 2,000 meters. To face the new challenge, Petrobras conducted the first PROCAP, between 1986 and 1991. This was a six-year J1 R & D program with costs of over US 70 million, to develop technological capability to produce in waters as deep as 1,000 meters. Its success allowed the Company to recently bring into production such fields at low costs and high safety standards. Many research and development activities has been carried out in the world concerning deepwater technology. Petrobras has been playing an important role in this scenario throughout the past and present decades. It has recently brought into production its giant deepwater fields, Albacora, Marlim and Barracuda, with wells in waters as deep as 1,027 meters, or 3,370 feet. THE IMPORTANCE OF DEEPWATER PRODUCTION TO BRAZIL At the end of 1995, the total Brazilian reserves of oil and gas equivalent reached 11 billion barrels. 41% of that is located in deep waters, that is, between 400 and 1000 meters. The reserves located in depths over 1,000 meters, classified as ultra-deep waters, represent 22%. But in this case, it is first necessary to have technology to allow production in such condition. In short, Brazilian oil and gas equivalent total reserves in deep and ultra-deep waters stand for over 60% of the total (figure 3). The importance of deepwater technology can be also emphasized by the fact that according to Petrobras Exploration staff over 60 % of the potential oil and gas discoveries, that is, new fields where favorable characteristics indicate the existence of hydrocarbons, will be in deep and ultra deepwaters,. These figures reveal that Brazil’s future regarding oil production is strongly related to offshore fields located over 400 m water depths. Today, the Brazilian current oil production is 820,000 barrels per day. This production is not enough to meet the Brazilian market demand which is nowadays of 1,4 million bpd. Nine years from now, in the year 2005, the estimates indicate that PETROBRAS oil production will be able to reach 1.65 million bopd. This figure represents twice the current production (figure 4). J1 In order to increase Petrobras ’s domestic oil production, it must develop its deepwater fields. The estimate also indicates that around 70% of this oil production will come from deepwaters in 2005. From those figures expected for the near future, one can easily conclude that Petrobras is on the way to substantially increase its offshore activities by the end of the century. The amount of the reserves to be exploited during this period will be two times as big as the amount of the reserves already developed. PETROBRAS EXPERIENCE WITH FLOATING PRODUCTION SYSTEMS The table 1 showed below, demonstrates Petrobras experience on Floating Production Systems. We have more than 230 subsea trees already on the seabed, 2,500 kilometers of flexible lines and umbilicals laid, 38 Subsea manifolds and 14 FPS in operation. Significant increase is expected in the next 5 years, almost doubling the number of equipment installed. Equipment Installed Planned 96 - 2000 Subsea Trees 231 181 Subsea Manifolds 38 15 Subsea Flexible Flowlines (Km) 1,500 1,870 Control Bundles (Km) 1,000 980 Floating Production Units 14 12 Monobuoys 9 2 Table 1 - Equipment Demand Forecast The installation of those 12 Production Systems and all the related equipment poses a significant challenge for a single oil Company. Satisfied with the performance achieved with the Floating Production Systems, particularly in deep water, Petrobras feels comfortable to install more 10 deepwater production systems to develop its oil fields, in the next 5 years, according to table 2. FIELD EPS Type Process Storage Start of Water Number Plant Capacity Production Depth of Wells Capacity (bbl) (Bopd) Marlim P-19 SEMI1 100,000 Jun/97 770m 16 - Prod. Stawinner 12 - Ii^t 16 - PiST Marlim P-26 SEMI1 100,000 Oct/97 990m Iliad 08 - Injec Marlim P-33 FPSO2 50,000 2,000,000 Jan/98 730m 06 - Prod Henrique 3+1-Injec. Dias Marlim P-32 FSO 1 2,000,000 Apr/97 160m Cairn Marlim P-35 FPSO2 100,000 2,000,000 Mar/98 860m 18 - Prod. Jose 08 - Injec Bonifacio Marlim P-29 SEMI 130,000 Jun/99 940m 16-P^| or 12 - Injec. FPSO2 Marlim P-27 SEMI1 50,000 Apr/98 530m 07 - Prod. 03 - Injec. Albacora P-25 SEMI1 100,000 Oct/96 575m 10 - Prod Zapata (sat) Artie 16-Prod (2 man) Albacora P-31 FPSO1 100,000 2,000,000 Aug/97 330m 28 - Prod. Vidal de 07 - Injec. Negreiros Barracuda P-34 FPSO1 35,000 340,000 Jul/97 840m 11 - Prod PP Moraes TOTAL 765,000 8,340,000 (1) Under 485,000 4,340,000 Construction /Bid (2) Under 280,000 4,000,000 Design APRIL/96 Table 2 - Floating Production Units Under Development It is worth mentioning that those 10 systems will increase the Brazilian Production by 765,000 bpd, almost doubling the current output.