Petrobras discovers natural gas in the Sergipe Basin

According to a report published by the ‘Estadão’, Petrobras has made its biggest discovery in Sergipe since the pre-salt in 2006. It expects to extract 20 million m³ of natural gas per day from the six fields, equivalent to a third of total Brazilian production. The finding is expected to generate US$7bn in annual revenues for state-owned and member companies, estimates Gas Energy.  According to the Estadão, in the government’s assessment, the finding could help put into effect the ‘cheap energy shock’ plan promised by the economy minister, Paulo Guedes – a plan to reduce the cost of natural gas by up to 50% and ‘reindustrialize’ the country.

The report says that the government believes that in a short time, Sergipe will produce the cheapest gas in Brazil. Firstly due to the increase in production, and secondly by the start-up of rivals of the oil company, such as ExxonMobil, which has exploration projects in the region. Another factor will be the presence of gas import companies, which will also compete for the outflow infrastructure. In this way, the trend is to reduce the transportation tariff and hence, also the final price of the product.

Felipe Kury, director of the National Agency for Petroleum, Natural Gas and Biofuels (ANP), classifies the potential of the Sergipe-Alagoas Basin as “very promising”. Besides the six Petrobras fields, the ANP believes that there are other areas in the region that may have oil and gas that, in the coming years, may result in new relevant discoveries. According to data from the Ministry of Mines and Energy, to delimit the reservoir and build a gas pipeline to the coast, Petrobras is expected to spend US$2bn this year. The state-owned company has not disclosed plans for the region.

Clarifications from Petrobras

On Monday June 17, Petrobras issued a statement regarding media reports on the discovery of natural gas in the Sergipe Basin. In the note, the company clarifies that in recent years six deepwater discoveries have been confirmed in the Sergipe Basin: Cumbe, Barra, Farfan, Muriú, Moita Bonita and Poço Verde. According to the statement, the 2019-2023 Business and Management Plan contemplates the budget for the installation of a production system, with studies on this project being in its initial phase.

The Company is conducting a Discovery Assessment Plan for these areas to evaluate the productive potential of its oil and natural gas reserves, and a long-term test in the Farfan area is planned for this year, in order to gain better information on characterization of the rock-reservoir and fluids in the area to help studies.

Sources: Estadão and Agência Petrobras de Notícias

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