Petrojarl I FPSO

Enauta hires rig for Brazilian field ops

Brazilian oil and gas company Enauta has signed a drilling rig contract for operations on its Atlanta field located offshore Brazil.

Petrojarl I FPSO; Source: Enauta

Enauta informed on Tuesday that the Alpha Star rig had been contracted to execute the drilling of the Atlanta field’s fourth well of the Early Production System (EPS).

Drilling is estimated to begin in the fourth quarter of 2022. It also foresees eventual extension, after Enauta’s notice to include the drilling of other two wells for Atlanta’s Full Development System.

Alpha Star rig; Source: Keppel
Alpha Star rig; Source: Keppel

Located in the Block BS-4, in the Santos Basin, the Atlanta field is operated by Enauta Energia, a wholly-owned subsidiary of the company, which holds 100 per cent working interest in this asset.

Enauta Energia on 31 January 2022, entered into a time services agreement with Serviços de Petróleo Constellation and a charter agreement with London Tower Management for the contracting of the drilling rig called Alpha Star for the drilling of the fourth well of the SPA in the Atlanta field.

The company foresees that the fourth well’s drilling should last approximately 60 days, and the agreement can be, subject to Enauta’s board approval, renewed for another 150 days for drilling operations of the other two producing wells and lines relocation.

The overall amount estimated and approved is $23 million for one well, and contractors granted usual guarantees in agreements of this nature and proportional to the obligations assumed thereby.

Enauta has also recently entered into an agreement for the purchase of FPSO OSX-2 for the Definitive System (DS) of the Atlanta field.

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The FPSO acquisition and adaptation cost will be around $500 million. In addition to the unit, the capex related to well drilling and subsea equipment is estimated at $500-700 million.

The Atlanta field is producing since 2018 through an Early Production System (EPS) – comprising three wells connected to the FPSO Petrojarl I.

Back in January, the production from the field was shut down to complete the repair of a production line on the Petrojarl I FPSO. Repairs were soon completed but the occurrence of a Covid-19 outbreak in the unit led to a lockdown on the unit, hampering production restart.

The production restart was then reported on 24 January, the same day as the FPSO contract. The start of the second well needed to wait for identification and repair of electrical system failure. The field was producing around 4,000 barrels of oil per day.