Wednesday, June 7, 2023

Equinor starts up Peregrino Phase 2 project offshore Brazil

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Equinor said first oil was produced at the Peregrino Phase 2 project on October 10 at 20:00 local time, using the Peregrino C platform.

The project consists of the new platform with drilling facilities and living quarters tied into the existing Peregrino floating production, storage, and offloading (FPSO) vessel, and a new pipeline importing gas to the platform for power generation.

It was on schedule for planned start-up late in 2020 when Covid-19 hit the project hard, leading to cuts in the workforce several times in the crucial and normally labor-intensive hook-up phase. Though late, Peregrino phase 2 was delivered within the original US$3 billion cost estimate.

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“I am thrilled that we have started production from the new Peregrino C platform. Covid-19 has made Peregrino phase 2 a challenging project, and I want to thank everyone involved for delivering the project with excellent HSE results,” says Geir Tungesvik, Equinor’s executive vice president for Projects, Drilling & Procurement.

The Brazil project will extend the life of the producing field to 2040, tapping 250-300 million barrels more of oil, while halving expected carbon dioxide (CO2) emissions per barrel over the remaining lifetime.

In operation, the new platform will provide 350 long-term jobs offshore and onshore in Brazil.

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In line with Equinor’s low-carbon strategy, measures have been taken to reduce CO2 emissions from the Peregrino field. By switching from diesel to gas for power generation on Peregrino C, phase 2 will avoid 100,000 tonnes of CO2 emissions from the Peregrino field per year, the operator said. It expects this to also reduce costs and simplify logistics in the operational phase.

Al Cook, Equinor’s executive vice president for Exploration & Production International, said “The start-up of Peregrino Phase 2 is an important milestone in Equinor’s growth strategy in Brazil. This project showcases how we can bring valuable new resources onto production at the same time as investing in technology to cut carbon emissions. I am proud that Peregrino Phase 2 will increase field production to 110,000 barrels per day at plateau whilst halving our emissions intensity.”

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