Equinor’s ‘largest international asset’ starts producing oil off Brazil

October 16, 2025, by Dragana Nikše

Norwegian state-owned energy giant Equinor and its partners have achieved first oil production from a large field in Brazil’s Santos Basin.

FPSO Bacalhau; Source: Pré-sal Petróleo (PPSA)

With recoverable reserves of over 1 billion barrels of oil equivalent (boe), Bacalhau is described by Equinor as its largest international asset. According to MODEC, which operates the floating production storage and offloading (FPSO) unit Bacalhu working at the field, this is Equinor’s first pre-salt project in Brazil.

The partners in Bacalhau are Equinor (40%, operator), ExxonMobil Brasil (40%), Petrogal Brasil, which is a joint venture between Galp and Sinopec (20%), and Pré-Sal Petróleo S.A. as the PSA manager. With over 1 billion of estimated recovery reserves for Phase 1, the field is thought to be important not only for Brazil but also for the global market.

“The safe start-up of Bacalhau marks a major milestone for Equinor. Bacalhau represents a new generation of projects that bring together scale, cost-efficiency and lower carbon intensity. With this development, we are strengthening the longevity of our oil and gas production and securing value creation for decades to come,” highlighted Anders Opedal, President and CEO of Equinor.

Bacalhau is located in the pre-salt region of Brazil’s Santos Basin in ultra-deep water of over 2,000 meters. It is spread across two blocks, BM-S-8 and Carcará North, approximately 185 kilometers off the coast of Ilhabela, São Paulo.

The Bacalhau discovery well was drilled by Petrobras in 2012, with Equinor taking over as operator in 2016. According to the Norwegian player, this is the first field development in Brazil’s pre-salt to be developed by an international operator.

The asset has a high-quality carbonate reservoir containing light oil. 19 wells, producers, and injectors are planned for Phase 1, for which drilling started in 2022. These will be brought online in sequence as production is ramped up and sustained. An investment of $8 million is planned for this stage.

“Brazil is a core area for us and Bacalhau will be a major contributor to Equinor’s goal of generating more than 5 billion dollars of free cashflow by 2030 from our international portfolio. Bacalhau will also deliver positive ripple effects and long-term benefits to Brazil´s economy, creating approximately 50,000 jobs over its 30-year lifetime,” said Philippe Mathieu, Executive Vice President for Exploration and Production International.

The FPSO Bacalhau working in the field is said to be one of the most modern in the world, measuring 370 meters in length and 64 meters in width, with a production capacity of 220,000 barrels of oil per day (bpd).

Bacalhau start-up

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According to MODEC, which celebrated the first oil milestone, the unit is one of the largest FPSOs ever delivered to Brazil. Designed to produce up to 220,000 barrels of crude oil per day, the FPSO also boasts a minimum crude oil storage capacity of 2,000,000 barrels.

It features combined-cycle gas turbines (CCGT), a technology that is said to slash carbon intensity. With an expected CO2 intensity of around 9 kg per boe, and advanced abatement across flaring, processing, power generation, and storage, the field is expected to set a new benchmark for cost-efficient and lower-emission deepwater production.

The FPSO features MODEC’s M350 hull, which the company says boasts enhanced topside capacity, greater storage than conventional VLCC tankers, and a longer service life. The unit represents MODEC’s 17th FPSO/FSO delivery in Brazil, the 9th FPSO in the pre-salt region, and the firm’s first collaboration with Equinor.

The FPSO reached its destination in the Santos Basin in February 2025, following a christening ceremony at Seatrium’s yard in Singapore in October 2024. MODEC is envisaged to operate the unit for the initial phase, after which Equinor plans to take over until the end of the license period.