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Fossil Energy

about 2 years ago

Announced strikes might take a hit on production start of Brazilian FPSO

The start of production from Enauta’s FPSO Atlanta is facing possible delays due to the announced strike of public officials in Brazil.

2 minutes read
FPSO Atlanta; Source: Enauta
FPSO Atlanta; Source: Enauta

The second well connection to Enauta’s floating production, storage, and offloading (FPSO) vessel Atlanta, which allows the production on the new platform working on the Atlanta field offshore Brazil to start, is expected to be completed in the coming weeks. However, production could be postponed due to the announced strike of public officials in Brazil.

After Enauta shared that the FPSO Atlanta arrived in Brazil in early May and subsea equipment installation would start later that month, the latest update by the Brazilian player states that the anchoring was concluded in June, with the first producing well and all its service lines connections completed on July 4.

The second well, allowing the production to start, is expected to be connected in the coming weeks, but the oil and gas player fears the production startup could be affected by the announced strike of regulatory agencies’ employees.

Although the company has not disclosed whether this would have an impact on the first oil, which was targeted for August, it underlined that the connections of the four remaining producing wells would be carried out within the original timeframe.

As the date for the start of operations for FPSO Atlanta remains uncertain, the company decided to postpone the resumption of Early System Production through FPSO Petrojarl I for the next two weeks. This will be done by including maintenance items allowing operations to be extended until Q4 2024.

FPSO Petrojarl, which underwent maintenance in May and in June , is set to be replaced by FPSO Atlanta. Chartered and operated by Malaysia’s Yinson Production, the latter can process 50,000 barrels of oil per day and store 1.6 million barrels. Under its current contract, the vessel will stay in the Brazilian field for 15 years, plus a five-year optional period.

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Enauta is currently working on turning a merger with compatriot firm 3R into reality. The two shared the merger plan in early April, signing a memorandum of understanding (MoU) later that month. After greenlighting a set of protocols containing the terms and conditions for the merger and incorporation of shares , the two companies received approval for the merger from Brazil’s Administrative Council for Economic Defense (CADE) this month.

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