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Brazil's Petro Rio shutters Frade field for repairs to inert gas line

Highlights

Shutdown to last 5-7 days

Failure of inert gas line

Follows drilling campaign

  • Author
  • Jeff Fick
  • Editor
  • Alisdair Bowles
  • Commodity
  • Natural Gas Oil

Brazilian independent Petro Rio has temporarily shuttered production at the offshore Frade field in the Campos Basin after an inert gas line linked to the field's floating production unit failed, just weeks after completing a drilling campaign that dramatically boosted output from the field.

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"The company initially estimates that the stoppage could last five-seven days and will keep the market informed about developments," Petro Rio said in a filing with stock regulators submitted after markets closed Aug. 15.

The temporary production stoppage undermines the positive outlook for revitalization at Frade after Petro Rio recently completed the successful drilling of two new production wells at the field. The company also plans to add two injection wells during the campaign, which is expected to be completed in the fourth quarter of 2022.

Frade produced 28,509 b/d of oil equivalent in July, an increase of 71.6% from 16,616 boe/d in July 2021, Petro Rio said. July's output also more than doubled the 14,061 boe/d produced in June.

The two new production wells tapped a new carbonate reservoir that was estimated to be four-to-five times larger than originally expected, according to company officials. The ODP4 well stabilized production at about 15,000 b/d, well above initial estimates for output of about 6,000 b/d.

The prolific performance of the ODP4 well also opened the door for Petro Rio to anticipate drilling of the MUP3A well, which was expected to be part of the second phase of revitalization drilling at Frade. Production from the MUP3A well stabilized at about 3,500 b/d, according to Petro Rio. The well utilized part of the existing MUP3 well, which reduced costs and accelerated drilling.

"We were able to deliver to wells for the price of one," Petro Rio's chief operations officer Francisco Fernandes said Aug. 4 during a conference call with analysts and investors.

The performance of the two wells and improved details about the field's carbonate reservoirs has Petro Rio considering the possibility of accelerating the second phase of revitalization rather than wait until 2023 or later, CEO Roberto Monteiro added.

"Maybe it makes sense to bring the project forward and afterward move onto Wahoo's development because we've been more efficient and quicker than we expected," Monteiro said. The project, however, wouldn't affect the company's plan to pump first oil from the Wahoo discovery in 2024, the executive said.

The Norbe VI semisubmersible drilling rig is currently tapping the first of two water-injection wells that will also be added during the revitalization project. Water injection at Frade was halted in 2011 after a drilling accident at the field.

Upon completion of the two injection wells, the rig is scheduled to relocate to the Wahoo discovery to start development drilling. The rig will drill four production wells, which will then be tied back to the Frade floating production, storage and offloading vessel.