Brazil looking to resume production at Bahia oil and gas hub

The head of Brazil's oil and gas watchdog ANP, Rodolfo Saboia, and watchdog director Symone Araújo visited Bahia state to discuss the impact of the suspension of the Bahia Terra hub and how to ensure a fast and safe return to production.

They met on Wednesday with Bahia governor Jerônimo Rodrigues and with the state’s oil workers union Sindipetro. ANP ordered the suspension last month for safety reasons. 

On Thursday, the ANP directors visited the facilities of some of the fields in the complex and met the oil and gas council of the federation of industries of Bahia (FIEB).

The regulator found a lack of fire and gas detectors; the unavailability of fixed fire-fighting systems; emergency vents that were not large enough; and a failure to have measures prepared in case of a confirmed gas leak.

Last week, the regulator decided to create a working group to monitor the situation at the hub and draw up measures for the gradual and complete resumption of production.

Located in the Recôncavo basin, Bahia Terra comprises 28 onshore fields that are included in the divestment plans of state-run oil firm Petrobras. 

In partnership with Infra Construtora e Serviços, Aguila Energia was originally the winner of the bidding process for the complex, but was disqualified by Petrobras, which claimed the companies failed to present the financial guarantees required. 

A consortium formed by Petrorecôncavo and Eneva won the new bidding process but an injunction granted by a court in Rio de Janeiro on behalf of Aguila ordered a halt to negotiations.   

With a focus on large deep and ultradeep water exploration and production undertakings, Petrobras has been selling most of its onshore and shallow water assets. 

Those that still remain in the company's portfolio are often subject to investment cuts, which could be the reason for the problems identified by ANP in Bahia.