Oil and Gas

Equinor to invest US$ 8 bi in Brazilian pre-salt

Jun, 02, 2021 Posted by Ruth Hollard

Week 202123

Norwegian Equinor, together with partners ExxonMobil and Petrogal, reached a final investment decision in the Bacalhau Project (formerly Carcará Project), in the Santos Basin, and announced yesterday a joint investment partnership valued at US$ 8 billion for the first pre-salt field to be developed by a foreign oil company in Brazil. The asset should start producing in 2024.

The project is a partnership between Equinor (40%), ExxonMobil (40%), Petrogal (20%), and Pré-sal Petróleo SA (PPSA) the union’s representative in the contract. The project will be developed in the middle of big global oil companies’ adaptation to the energy transformation towards a low-carbon economy. The official announcement of the final investment decision in the Bacalhao project takes place just two weeks after the International Energy Agency (IEA) suggested the immediate suspension of new exploration well drilling to ensure the emission cuts laid out in the Paris Agreement.

The president of Equinor in Brazil, Verônica Coelho, states that the Bacalhau Project has proved to be a competitive project within the company’s global asset portfolio, both from an economic and environmental point of view. In this sense, according to the executive, Bacalhau will allow the company to produce oil with lower-than-world-average emission rates at a profit, even while the commodity is in a devaluation scenario.

Source: Valor Econômico

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