Statoil starts Peregrino; makes adjacent find

HOUSTON, Apr. 15 -- Norway’s Statoil made a oil discovery south of Peregrino heavy oil field in the Campos basin off Brazil even as it started production from the field earlier this month.


An exploratory well drilled in 120 m of water 85 km east of Rio de Janeiro on the Peregrino South structure a few kilometers south of Peregrino encountered oil in sandstones of the Tertiary Carapebus formation.


Statoil will perform further work to confirm volumes after the well cut a 130-m gross oil column. Drilling continued to probe deeper reservoir units and explore potential below the main reservoir, the company said.


Statoil said the well’s results verify upside potential in the general area and, added to the 2007 Peregrino Southwest discovery, will play an important role in further development.


After it completes the Peregrino South well, Statoil will drill one more appraisal well at Peregrino Southwest to determine the overall size of the new development.


Oil production began from Peregrino field in early April. It is to ramp gradually to a plateau of 100,000 b/d of oil equivalent (OGJ Online, Feb. 9, 2011). The initial development is estimated to hold 300-600 million boe recoverable.


Applying produced water injection, horizontal wells, and flow assurance to sustain the project over a longer-term, Statoil has doubled the initial recovery factor to 20%. Peregrino’s producing life is expected to extend until 2040.


Statoil in May 2010 sold a 40% stake in Peregrino field to the Sinochem Group. Statoil holds 60% and remains operator.