Brazilian oil company Enauta has extended the charter of the Petrojarl I FPSO, used as an early production system at its Atlanta field, in the Santos Basin, offshore Brazil.
Enauta signed contracts with Altera to extend the charter and Operation and Maintenance (O&M) of FPSO Petrojarl I.
"The agreements will have an additional duration of up to two years, and their expiration was extended from May 2023 to May 2025. The cost to adapt the unit will be US$30 million. The extension is contingent upon the issue of the DNV (Det Norske Veritas) Certificate before the expiration of the current agreement," Enauta said.
As previously reported, Enauta in December signed a letter of intent with Malaysian FPSO contractor Yinsonfor the provision, operation, and maintenance of a 'Definite System' FPSO at the Atlanta field for full-field development.
Commenting on the Petrojarl I FPSO Extension, Carlos Mastrangelo, the Company’s COO said Tuesday: "This new term promotes the operational continuity of the Atlanta Field and may enable the temporary and simultaneous operation of the EPS and the Definitive System, if approved, optimizing the transfer time of FPSO Petrojarl I wells to the new FPSO of the Definitive System.
"Another gain from the extension is the maintenance of Atlanta’s operating cash flow for more than a year, since the interruption of production between the end of the EPS and the startup of the DS may be avoided. In addition, the increase in water treatment capacity will reduce future restrictions of the existing production plant."
Production stoppage planned
A 35-day production stoppage is planned so maintenance can be carried out on equipment that needs to be turned off.
"Enauta is working to ensure that these activities are carried out at the same time as the periodic stoppages established by the Ministry of Labor, thus reducing the need for additional downtime," Enauta said.
"The bidding process for the FPSO and other equipment for the DS of Atlanta continues as planned. Enauta is evaluating the proposals received in order to make its Final Investment Decision - FID in the first quarter of 2022 and begin production in the DS in mid-2024," Enauta said.