Equinor invests in natural gas production in Brazil

Norwegian company Equinor is exploring locations off the Brazilian coast to install new natural gas infrastructure, said Margareth Øvrum, the company’s president in Brazil. The company is also preparing for the start-up of offshore gas fields in the coming years.

In an interview, Margareth Øvrum estimated that the “Pão de Açúcar” field, a condensed gas area, could start production in the mid-2020s, probably becoming the first major gas-focused maritime field to come into operation in Brazil under the operation of a foreign oil company.

Other companies will be watching Equinor’s experience closely as the offshore gas flow infrastructure is more complex than oil due to the difficulty of handling the input, and so far only Petrobras has had such experiences in Brazil.

Equinor also has the same expectations in the Carcara field in Brazil. It expects to begin production of the “first phase” of this field in 2023 or the first half of 2024. The company has not yet decided when to begin phase two, but this may also involve building natural gas infrastructure.

Equinor is one of 14 companies listed for the government’s “mega auction” that will offer excess volumes under the so-called assignment contract on Nov. 6, when the government expects to raise about R$106bn in signature bonuses by negotiating four assets.

Source: Reuters

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