Equinor’s Peregrino oil field offshore Brazil is on track to restart in the first half of 2021 following several delays, a spokesman said on April 12.
The heavy oil field in the Campos basin was shut in April 2020 due to a rupture of a riser at the Peregrino A platform during a test. Since the rupture was caused by corrosion, the company has decided to repair or replace other risers.
“The Peregrino field in Brazil is still shut down due to the riser rupture,” the company said in a letter to analysts on April 12, ahead of its quarterly earnings report due on April 29.
Equinor had originally expected to complete the repairs by year-end 2020 and then in the first-quarter 2021, but progress has been slowed down by the COVID-19 pandemic, the company said.
“We expect (Peregrino) production to resume in the first half of 2021,” an Equinor spokesman said on April 12, reiterating the outlook given in the company’s annual report published on March 19.
The company has estimated the repairs to cost about $60 million net to the company, classified as operational costs, and spread over fourth-quarter 2020 and first-quarter 2021.
Equinor’s equity output from Peregrino dropped to 9,000 barrels of oil equivalent per day (boe/d) in 2020, down from 37,000 boe/d the previous year.
The company’s total oil and gas output stood at 2.1 million boe/d last year, with 40% produced outside Norway.
China’s state-run Sinochem holds a 40% stake in Peregrino.
Recommended Reading
Not Sweating DeepSeek: Exxon, Chevron Plow Ahead on Data Center Power
2025-02-02 - The launch of the energy-efficient DeepSeek chatbot roiled tech and power markets in late January. But supermajors Exxon Mobil and Chevron continue to field intense demand for data-center power supply, driven by AI technology customers.
Ovintiv Names Terri King as Independent Board Member
2025-01-28 - Ovintiv Inc. has named former ConocoPhillips Chief Commercial Officer Terri King as a new independent member of its board of directors effective Jan. 31.
Murphy Shares Drop on 4Q Miss, but ’25 Plans Show Promise
2025-02-02 - Murphy Oil’s fourth-quarter 2024 output missed analysts’ expectations, but analysts see upside with a robust Eagle Ford Shale drilling program and the international E&P’s discovery offshore Vietnam.
Confirmed: Liberty Energy’s Chris Wright is 17th US Energy Secretary
2025-02-03 - Liberty Energy Founder Chris Wright, who was confirmed with bipartisan support on Feb. 3, aims to accelerate all forms of energy sources out of regulatory gridlock.
Enbridge Appoints Steven Williams to Chair of the Board
2025-03-12 - Enbridge has appointed Steven Williams to lead the board of directors following Pamela Carter’s retirement as chair.