Petrobras to rethink Tupi development plan after reassigning FPSO to Itapu find

London — Brazilian state-run Petrobras plans to reschedule the further development of its giant offshore Tupi subsalt field after reassigning a new production platform for the field to bring onstream its Itapu discovery earlier than expected.

Petrobras said on Oct. 27 it has agreed to buy out the stakes of Shell and Galp Energia in the FPSO P-71 floating production unit (FPSO) for around $353 million. The 150,000 b/d platform, currently in the final construction phase at the Jurong Shipyard in Espirito Santo state, was originally scheduled to be installed at Tupi in 2022.

Petrobras said it will now carry out a revision of Tupi's further development plan with partners Shell and Galp and submit a new plan to the regulator ANP in 2021. The updated plan will identify additional development projects that are resilient to low oil prices, Galp said in a separate statement.

Petrobras operates Tupi, Brazil's biggest oil and natural gas producer, with 65% in the BM-S-11 block where Tupi, formerly known as Lula, is located. Shell holds a 25% working interest and Galp the remaining 10%.

Tupi is currently producing through nine FPSOs, which have a combined capacity of 1.3 million b/d of oil equivalent via 119 wells. Production from the existing nine FPSOs, however, is estimated to have already peaked.

Galp said that the initial recovery target for the combined 20 billion barrel play had been 28% at the outset of the project 10 years ago, the partners could target nearer to a 40% recovery rate for the new development.

With the P-71 FPSO reassigned to the Itapu discovery in the Santos basin, Petrobras said it now expects Itapu to start up next year, ahead of an original plan for a 2024 startup.

Petrobras acquired 100% of the exploration and production rights of the Itapu find last November in Brazil's Transfer of Rights round, the country's largest-ever auction of oil licenses. Petrobras paid a $443 million signing bonus and guaranteed the government 18.15% of profit oil for the rights to develop an additional 300 million-500 million boe.