PetroRio to buy additional stake in Wahoo field, offshore Brazil

first_imgThe Brazilian oil and gas company will increase its stake in the pre-salt field to 64.3% The Wahoo field is planned to be developed with an investment of $800m. (Credit: Keri Jackson from Pixabay) Petro Rio (PetroRio) has agreed to acquire an additional 28.6% stake in the BM-C-30 Block, containing the Wahoo field offshore Brazil, from Total E&P do Brasil.The financial terms of the deal were not disclosed by the Brazilian oil and gas company.The deal increases PetroRio’s operating stake in the BM-C-30 Block to 64.3%. In November 2020, the company signed a deal to acquire a 35.7% stake in the pre-salt block alongside a stake of 60% in the BM-C-32 Block, which contains the Itaipu field.The latest deal and the one signed last November are yet to be closed and are subject to preceding conditions.Oil discoveries were made in Wahoo in 2008. A subsequent formation test in 2010, showed the Wahoo field to have a potential of yielding more than 140 million barrels.PetroRio estimates an average initial productivity of more than 10,000 barrels per day per well. On the other hand, total production from the field is projected to surpass 40,000 barrels per day, based on the formation test carried out in the pilot well.The Wahoo field is planned to be developed with an investment of $800m through a subsea tieback to the floating production storage offloading (FPSO) unit of the Frade field.PetroRio is the 100% owner of the Frade field, located 30-35km south of the Wahoo field.As part of the Wahoo field development, the Brazilian firm will drill four producer wells and two injector wells. The tieback between the wells and the Frade FPSO is expected to cost $300m, while the well drilling will cost $360m.With a water depth of 1,400m, Wahoo has a carbonate reservoir at the pre-salt layer at a depth of 5,000 to 7,000m.last_img read more