Atlanta rising: Enauta launches tender for scaled-down floater to boost resilience

Source: Upstream


By: Gareth Chetwynd



With floater giants occupied by mega-projects in Brazil and Guyana, Enauta’s invitation to tender will stir up interest among second-tier suppliers


Brazil independent Enauta has launched a tender for a floating production, storage and offloading vessel for the Atlanta development in Brazil’s prolific Santos basin.


The tender marks a trend where junior and independent operators are bringing a more diverse look to a Brazilian oil sector once dominated by state giant Petrobras and, with floater giants SBM Offshore and Modec engaged with a glut of large-scale projects, the Atlanta tender is seen as an opportunity for second-tier players.


Enauta has already used an early production system (EPS) on Atlanta and recently sanctioned a long-term development plan that will feature an FPSO with capacity to process 50,000 barrels per day of heavy crude.


The floater will be connected to between six and eight horizontal production wells.


Three of these are already connected to the Petrojarl I FPSO, the unit that has been carrying out the EPS.


An earlier version of the development plan called for 12 production wells, connected to an FPSO with the capacity for 80,000 barrels per day.


Enauta engaged in a detailed review of the proposed field development after the withdrawal of former partner Barra Energia.


The review resulted in a decision to go ahead with the full-scale development, but only after streamlining the economics.


Enauta said its updated development plan will increase the economic resilience of the project due to a “significant reduction” in capital expenditure.


Enauta said it has acquired a purchase option on an unused FPSO suitable for adaptation — valid for 12 months —and can sell this on to the eventual winner of the Atlanta tender.


OSX floater


Sources consulted by Upstream suggested that the vessel in question is the OSX-2, which has been warm-stacked near Karimunbesar Island in the Singapore Strait since 2015, following the collapse of OGX, a unit of collapsed Brazilian conglomerate EBX.


With crude-processing capacity for 100,000 bpd, the OSX-2 was originally built by SBM Offshore with specifications for relatively heavy crudes in Brazil’s Campos basin, and is, one industry source said, “well-preserved and in ongoing hot lay-up.”


The OSX-2 had also been considered among BP’s options for developing the Palas-Astraea-Juno (PAJ) project off Angola.


In a stock market filing, Enauta stated that the contracting process will now take between 10 and 12 months to be concluded.


A pairing between Brazil’s Ocyan and Aberdeen-based Altera Infrastructure has been quoted as an early favourite in the new tender, with Oslo-listed BW Offshore seen as another strong candidate.


“We are starting the bidding process with full confidence in the resilience of our project,” said Carlos Mastrangelo, production director with Enauta.


“The EPS brought us relevant information to reduce uncertainties when implementing the (full development system), which will be developed utilising only well-known technologies.”


Enauta recently resumed production from the Atlanta EPS after three months of interruptions due to faults with one of the oil-heating systems on board the Petrojarl I FPSO.


The well in question resumed production at a rate of more than 10,000 barrels per day.


A second well is due back on line at the end of March, and a third in the middle of this year.


The Petrojarl I FPSO is owned and operated by Aberdeen-based Altera Infrastructure.


Atlanta has an estimated 2 billion barrels of oil in place, but the crude has a gravity of 14 degrees API and the field sits in 1500 metres of water.


Reserves are estimated at 112 million barrels of oil equivalent on a proven and probable basis.