Petrobras to Mothball Offshore Platform to Cut Costs

Friday, August 7, 2020

Brazilian oil and gas company Petrobras has said it will mothball its Merluza platform (PMLZ-1) in shallow waters in the Santos Basin.

"The platform’s production had already been interrupted since March 2020, with the abrupt drop of demand for natural gas, and the deactivation will allow the reduction of operating expenses and the transfer of professionals to other Petrobras units," Petrobras said Friday.

Petrobras said that the deactivation would not impact the divestment process of the Merluza Complex and the supply of natural gas to the Santos' coastal area market. 

The Merluza Complex is comprised of the Merluza and Lagosta concessions, in which Petrobras holds an interest 100%.

Its average production totaled 3,600 barrels of oil equivalent per day of natural gas and condensate in 2019. The Merluza and Lagosta fields are currently in a binding phase for divestment. Production in the area started in 1993.

In a separate statement on Friday, Petrobras said it had started a binding phase for the sale of its stake in the Tartaruga shallow water field in the Sergipe-Alagoas Basin.

Map Credit: Petrobras

Categories: Energy Activity Production South America Shallow Water

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