The state-owned Brazilian energy company Petrobras has announced plans to invest $5.5 billion in new exploratory activities over the next five years. The company’s representative, Eduardo Bordieri, told the Annual Breakfast Offshore of the Brazil-Texas Chamber of Commerce in Houston that recent oil discoveries in pre-salt basins such as Alto de Cabo Frio Central and Aram have prompted it to intensify its exploratory efforts.
The increase in spending is primarily due to increased production, which will push crude oil output to 2.6 million barrels per day by 2022. The new investment plan for the company is expected to raise Petrobras’s net profit by 15%. However, it should be noted that most of the funds will be spent on exploration and production. That’s still a significant sum, and it will take a long time to see the benefits.
The company’s plans include three new floating production storage and offloading (FPSO) vessels. They’ll be able to navigate far-flung waters and weather high waves better than the conventional way of drilling. The company will also add three FPSOs to its fleet by 2022. This is a significant step forward for the company’s future and maybe the key to the success of the Sergipe-Alagoas project.
The new investment will allow Petrobras to use its existing assets better. The company plans to spend $16 billion on the Campos Basin to upgrade and connect more than 100 oil rigs. Investing in FPSOs is one way for the oil giant to unlock discoveries in Brazil. The new projects will also help them decommission some existing oil platforms in the future.
A recent executive shake-up in Petrobras’ management has resulted in Bolsonaro’s firing of CEO Jose Mauro Ferreira Coelho. The stock price dropped 12% on the initial details of his ousting. The CEO churn has not impacted Petrobras’ strategic investment plans. So far, the changes haven’t affected the company’s strategic investment plans.
Chesapeake Energy to drill 90 wells in Bakken.
Chesapeake Energy plans to drill ninety-one wells in the Bakken by 2022. The company already operates in two core fields, the Haynesville and the Marcellus, and it plans to place approximately twenty-five rigs in each of these fields by the end of 2022. Chesapeake is also targeting growth in the Eagle Ford and Marcellus Shale. Currently, the company has eighty-seven rigs operating in the Bakken.
The company is also considering drilling in the Permian Basin, including the Marcellus Shale. In addition to drilling in the Bakken, the company targets the Eagle Ford Shale formation in North Dakota. The company’s assets are primarily located in Texas, North Dakota, and Pennsylvania.
The company plans to connect 91 three-product and 14 water-only wells in the coming year. Overall, the company is estimating 350-450 three-product and water-only drilling locations on the Arrow system by 2022. Capital investments in the Bakken in 2021 will focus on two projects: the enhanced produced-water gathering system and incremental system compression.
The company plans to start production in its new Haynesville natural gas field in 2022. The company plans to complete the certification process for all of its natural gas operations in December 2021. In addition, Chesapeake will install 840 continuous methane emissions monitoring devices in its legacy Louisiana asset and newly acquired Vine acreage in 2022.
The Bakken formation lies at two to three thousand meters and consists of an upper shale, a middle dolomite layer, and a lower shale zone. The Middle Bakken zone is the primary oil-bearing zone, and the Three Forks formation lies directly below it. Together, these three formations form a petroleum system, and between these layers lies the oil-producing rock.