Perenco Petróleo e Gas do Brasil announces Sail Away for FSO Pargo

By Perenco Brazil

January 18, 2023

This is a machine translation of the press release originally published in Portuguese 

Perenco Brasil is pleased to announce that the Floating Storage and Offloading (FSO) vessel, “FSO PARGO”, has already left Dubai and is on its way to Polo Pargo in shallow waters in the Campos Basin.

Once anchored 2.8 km from the Pargo platform, the FSO will be instrumental in extending Perenco Brasil's offshore performance.

The “FSO Pargo”, a double-hull vessel built in 2004 with a storage capacity of 750,000 barrels, is expected to arrive at the final location in March, moored in April and operational in August 2023, after final approval by the authorization and licensing bodies.

FSO's conversion work began in September 2021 at the DryDocks World shipyard, in Dubai, with a view to extending its useful life by 20 years, adapting the vessel to Brazilian standards and including modifications, such as the installation of an external turret for the mooring system, helipad, measuring skid, an extra crane, a new unloading system and the export pipeline.

Daily production from the Pargo Pole, which comprises the Pargo, Carapeba and Vermelho fields, is now approximately 12,000 barrels of oil per day, an increase of approximately 300% from the 2,800 barrels per day when Perenco Brasil took over operation of the Polo in October 2019. Since then, Perenco Brasil has focused its efforts on safely resuming operations, revitalizing the Polo's infrastructure and executing the investment projects committed in the Development Plan.

Among these, an ambitious work plan for 2023 consisting of the installation in January of two new pipelines connecting the Carapeba and Vermelho fields to the Pargo platform, intensive intervention work in the wells with up to three simultaneous workover units in operation, modernization of the water treatment system, operational resumption of platforms Vermelho 1 and 2 and evaluation of reservoirs for potential new plays.

Combined, these projects will contribute to the company's continued organic growth in Brazil and enable the next production milestone of 15,000 barrels per day by the end of 2023. Regarding the Communiqué, the Managing Director of Perenco Brasil, Yves Postec, commented:

“We are pleased to confirm the departure of FSO from the shipyard, which is a key step in Perenco Brasil's $400 million Polo Pargo Development Plan. Perenco's technical expertise in the successful operation of mature fields is also demonstrated in the Polo Pargo concessions, where we have already completed three years of safe operations with positive results.

"At the same time, we are contributing to the economic development of Brazil and the regions surrounding our operations, by creating new direct and indirect jobs, increasing the state's collection of taxes and royalties, boosting the goods and services industry and investing in long-term community projects generating social and economic benefits. Thanks to our partners and the Perenco Brasil team. We remain committed to boosting the growth achieved in the first three years of operation.”

Perenco Brasil holds a 100% interest in the Polo Pargo concessions. The Pargo Development Plan was formally approved by the ANP in early 2021, along with the extension of Perenco Brasil's rights over the concessions until 2040.