Perenco plans to revitalize oil fields offshore Brazil once it takes over two assets from Petrobras

Perenco Brazil, part of the Perenco Group, has unveiled a redevelopment plan for two oil assets in the Campos Basin off the coast of Brazil, which the firm will acquire from Petrobras, a Brazilian state-owned energy giant.

Perenco’s acquisition of the Cherne and Bagre concessions comprises the Cherne and Bagre fields and two fixed platforms, located 30 km from the Pargo Cluster at 120-140 m water depth. According to the company, the PCH-1 and PCH-2 platforms were hibernated by Petrobras in early 2020 and later scheduled for decommissioning.

Armel Simondin, Perenco’s CEO, commented: “This acquisition is a new milestone for the Perenco Group in Brazil. Since takeover of the Pargo assets in 2019 at a rate of 2,800 bopd, we have increased production to over 20,000 bopd and successfully installed our own FSO. Perenco is proud to deploy its know-how to extend the life of these mature fields and grow our footprint in Brazil.”

The acquisition is expected to be completed in 2025, enabling Perenco to embark on a mission to implement a redevelopment plan to revitalize the assets, restart production to a target rate of 10,000-15,000 barrels of oil per day and unlock more than 50 mmstb of reserves.

Furthermore, a new export pipeline will be laid directly to Pargo to leverage the new floating storage and offloading (FSO) infrastructure, improve efficiency, and continue the firm’s strategy of gaining independence in the basin. The company is adamant that this deal exemplifies its appetite and capacity to add value by tackling the industry’s mature field challenges.

Currently, Perenco holds a 100% stake in the Pargo Cluster, which comprises the Pargo, Carapeba, and Vermelho fields located offshore in the shallow waters of the Campos Basin, off the coast of Rio de Janeiro. This concession area is developed by eight fixed platforms at around 100 meters of water depth.

Following the takeover from Petrobras in October 2019, the Pargo Cluster development plan was formally approved by the Brazilian authorities in 2021, along with the extension of Perenco’s concession rights until 2040.

The current production from the cluster is approximately 20,0000 barrels per day, up from 2,800 barrels per day when the company took over operations. In December 2023, the firm confirmed the first oil to its FSO Pargo after all operational licensing was received from the Brazilian regulatory authorities.

Perenco is also actively working on its other assets, including the ones in Gabon, where the firm recently began drilling activities at an appraisal well, using one of the jack-up rigs from the Netherlands-headquartered Dixstone.

The company also started a five-well development drilling campaign at a field offshore Cameroon, Central Africa, which last saw drilling action in 1984 due to challenging shallow waters and strong currents.