During early-October 2019, Equinor Brasil Energia Ltda concluded operations on the Guanxuma B T2 (1-STAT-010C-SPS) outpost side-track in the BM-S-008 contract and suspended the well with oil shows again.     It is assumed the partners conducted testing operations with results so far unreported. The rig is leaving Brazil.      In mid-August 2019, the SeaDrill âWest Saturnâ D/S returned to the location to conduct the operations.     On 8 September 2018, Equinor Brasil Energia Ltda suspended with results unreported the Guanxuma B T2 (1-STAT-010C-SPS) as the second side-track wellbore of the Guanxuma prospect in the BM-S-008 contract evaluation area.The final total depth reported for the well was 6,484 m measured depth (MD).The operator filed no oil and gas show reports for the wellbore with the ANP through late-September 2018. Press reports indicated that the intention of the wellbore was to core the reservoir interval and that the operator may return to conduct a DST and/or drill another outpost well.    The well was spudded on 10 August 2018.The operator suspended with oil shows the Guanuxma A (1-STAT-010A-SPS) and suspended with results unreported the Guanxuma B (1-STAT-010B-SPS) side-track wellbore prior to spudding the Guanxuma B T2 (1-STAT-010C-SPS) side-track wellbore at the same surface location and it is speculated the well is a directional geological side-track. The wellbore had a proposed total depth (PTD) of 6,630 m and will target the pre-salt Early Cretaceous Barra Velha and Itapema formations. The operator utilized the SeaDrill âWest Saturnâ D/S to drill the well.     Equinor Brasil Energia Ltda concluded operations on the Guanxuma B (1-STAT-010B-SPS) side-track wellbore in the BM-S-008 contract evaluation area and is assumed to have suspended the well with results unreported on about 9 August 2018 prior to the spudding of the 2nd side-track wellbore from the same surface location. There were no show reports filed to date with the ANP.   On 10 January 2018, Equinor Brasil Energia Ltda was granted a drilling permit to drill the Guanxuma and other prospects and appraisal wells in the BM-S-008 contract evaluation area by environmental authority IBAMA. The rig first conducted a cased hole formation test of the 3-SPS-104DA (3-BRSA-1216DA-SPS) outpost and prior to moving to the Guanxuma prospect. The Carcara prospect area is to be unitized with the Norte de Carcara block that Statoil and partners acquired through the 2nd PSC Pre-Salt Bid Round.    The      Guanxuma NFW is located approximately 31 km southwest of the Carcara      discovery in the southwestern area of the block. The structure has at least two culminations and Statoil will test      the northwestern area of the structure with an appraisal well. Two      additional appraisal wells are planned for the structure if it is      productive, one offsetting the Guanxuma 1 prospect and the other      offsetting the Guanxuma NW prospect. Former operator Petrobras had plans      to drill the well for several years.   Equinor      Brasil Energia Ltda has      a blanket permit to drill a total of seven wells, two new-field wildcats      (NFW), and five appraisal wells.Additionally, the permit covers conducting      a formation test of the 3-SPS-104DA (3-BRSA-1216DA-SPS) outpost that is      part of the discovery evaluation plan (PAD) commitments.The two NFWs      include the Guanxuma prospect and a new prospect, the Urtiga prospect. The      appraisal wells include the Carcara NW that is located to the northeast of      the 3-SPS-104DA outpost and there will be three appraisal wells on the      Guanxuma structure if found productive and one appraisal scheduled for the      Urtiga structure if productive. The original provisional schedule was for      the operator to commence drilling the first well in 3rd      quarter 2017, the testing of the 3-SPS-104DA outpost and drilling of two      wells in 2018, the drilling of two wells in 2019, and the final two wells      in 2020 that may extend into 2021.The timing of the drilling changed with      the operator waiting to bid on the Carcara Norte block in the 2nd      Pre-Salt Bid Round, and the entry of new partner Exxon Mobil.   The Urtiga      prospect is located approximately 23 km west of the Carcara structure and      is a new prospect developed by the operator. The operator plans for one      southeastern appraisal if the structure is productive.   Current      working interest breakdown in the contract is Equinor Brasil operator with      40% working interest, Exxon Mobil with 40% working interest, and Petrogal Brasil Ltd (Galp Energia) with      a 20% working interest pending formal approvals for the 10% Barra working      interest acquisition.   On      4 July 2018, Equinor issued a press release indicating it signed an      agreement to acquire the 10% working interest in      the BM-S-008 contract, Carcara discovery evaluation area held by Barra      Energia for USD 379 million pending formal governmental approvals.Once      formal approvals are granted, the operator will then sell and assign 6.5%      of the 10% to partners ExxonMobil and Petrogal in order to equalize      working interest in the BM-S-008 contract and contiguous PSC contract      Norte de Carcara block.The Barra working interest represents the last      piece of the puzzle here for Equinor to move forward with development of      the unitized Carcara discovery development which it hopes to bring      on-stream by 2023 to 2024. It reported that total estimated recoverable      reserves are 2 Bboe.        On      31 January 2018, the consortium of Statoil      operator with 40% working interest, ExxonMobil with 40%, and Petrogal with      20% was granted an official award      for the Norte de Carcara block from the 2nd PSC Pre-Salt Bid Round. The PSC contract has a      three-year exploration-evaluation phase and the minimum work program is to      drill one appraisal well.    On 28 November 2017, the ANP officially approved of the 10% working interest acquisition by Statoil from Queiroz Galvao in the BM-S-008 contract Carcara discovery evaluation area.The total transaction value was USD 379 million.Statoil paid Queiroz Galvao 50% or USD 189.5 million with the formal governmental approvals and the remaining 50% when certain conditions are met such as unitization with the Norte de Carcara block that Statoil and partners won in the 2nd PSC Pre-Salt Bid Round. The conclusion of the unitization process likely a year or two in the future. The resulting working interest breakdown in the BM-S-008 contract with the formal governmental approval is Statoil operator with 76% working interest, Petrogal Brasil Ltd (Galp Energia) with a 14% working interest, and Barra Energia with a 10% working interest. Also ExxonMobil farmed-in to the contract on 27 October 2017.Once the ExxonMobil farm-in for 36.5% is approved the resulting working interest breakdown in the BM-S-008 contract will be Statoil operator with 36.5% working interest, ExxonMobil with 36.5% working interest, Petrogal Brasil Ltd (Galp Energia) with a 17% working interest and Barra Energia with a 10% working interest.  On 27 October 2017, Statoil announced that it concluded a farm-out agreement with ExxonMobil for the discovery evaluation plan (PAD) PA_4BRSA971BSPS_BM-S-8 of the BM-S-008 contract, Carcara discovery.The transaction was announced after the results of the 2nd Pre-Salt Bid Round whereby the consortium of Statoil (40%), Exxon Mobil (40%), Petrogal (20%) won the Norte de Carcara block with a bid of 67.12% state take won the Norte de Carcara block plus the fixed bid of USD 910 million (1USD = 3.3 BRL).The transaction is complex with two different fiscal regimes and different working interest as well as formal approvals for the pending 10% working interest acquisition in the BM-S-008 contract by Statoil from Queiroz Galvao.In its press release Statoil indicated that its portion of the bonus is approximately USD 364 million for its 40% working interest in the Norte de Carcara block.For the BM-S-008 contract, the transaction has two phases.The first phase is that Statoil divested 33% of its 66% working interest to Exxon Mobil for a total consideration of USD 1.3 billion, USD 800 million in an upfront payment and a contingent cash payment of approximately USD 500 million.Additionally upon the formal approvals and closing of the 10% working interest from Queiroz Galvao, Statoil will divest 3.5% of the 10% to Exxon Mobil and 3% to Galp for a total consideration of USD 250 million, USD 155 million as an upfront payment and USD 95 million as a contingent cash payment.The resulting working interest breakdown in the BM-S-008 contract will be Statoil operator with 36.5% working interest, Exxon Mobil with 36.5% working interest, Petrogal Brasil Ltd (Galp Energia) with a 17% working interest and Barra Energia with a 10% working interest.All the partners have agreed that Statoil will be operator of the unitized field development subject to ANP approval.The discovery evaluation plan (PAD) PA_4BRSA971BSPS_BM-S-8 was modified in August 2017 pending results of the 2nd Pre-Salt Bid Round but now can move forward once the contract for the Norte de Carcara block is signed.Statoil has provisional plans to drill several wells in the contract including two new-field wildcats.   On 23 August 2017, the ANP granted Statoil approval for an extension and modification to the discovery evaluation plan (PAD) PA_4BRSA971BSPS_BM-S-8 of the BM-S-008 contract, Carcara discovery.The ANP granted the operator an extension of six months after the contract is signed for the Norte de Carcara block on offer in the 2nd PSC Pre-Salt Bid Round for the joint block owners to file a combined discovery evaluation plan (PAD).The PAD has a current final expiry date of 1 March 2018 which will be extended once the joint PAD is filed and approved.The contracts from the bid round are scheduled to be signed in early 2018, which would give the PAD a date of approximately 29 July 2018 for the companies involved to file the joint PAD.  On 14 September 2000, Petrobras, operator (50%), Shell (40%) and Petrogal (10%) were originally awarded the 4,865 sq km BM-S-008 contract through the ANP Round 2.Through various relinquishments and partnership changes during the contract phases the contract now covers 815.22 sq km as a discovery evaluation plan (PAD).The PAD has been extended and modified a number of times since the original contract expired on 9 August 2010 and now has a final expiry date of 1 March 2018.Petrobras was granted approvals by the ANP on 8 January 2014 for a modified discovery evaluation plan (PAD) for the 2,089.51 sq km Santos Basin BM-S-008 contract, PA_1BRSA532ASPS_BM-S-8, evaluation area that also included a partial relinquishment and modification of the PAD nomenclature to reflect the Carcara discovery well, the PA_4BRSA971BSPS_BM-S-8.Originally the PAD was granted based on the 1-SPS-052A (1-BRSA-532A-SPS) Bem-Te-Vi prospect but the area around the well was relinquished with the modified PAD approval.On 30 March 2016 the ANP approved a second modification to the PAD.The modification included substituting the long term cased hole production test of the 3-SPS-104DA (3-BRSA-1216DA-SPS) directional outpost with the drilling of the 3-SPS-105 (3-BRSA-1290-SPS) outpost.The operator was required to maintain the commitment to conduct a cased hole formation test of the 3-SPS-104DA (3-BRSA-1216DA-SPS) and to drill the Guanxuma prospect.
Brazil (Espirito Santo Platform (Espirito Santo B.)) Bem-Te-Vi (Espirito Santo)