At the end of Q3 2013, Maersk Oil reported it continues assessing the Itaipu and Wahoo appraisal wells, and lists the offshore Brazil projects as part of its long-term perspective.
Up to the first quarter of 2013, Maersk Oil has drilled four wells as operator and participated as partner in 13 other wells. The acquisition of SK do Brasil, an affiliate of SK Energy, provided them with access to exploration acreage, development opportunities and production.
Exploration
Maersk Oil entered Brazil in 2001 and since then have expanded their footprint in the offshore Campos basin through licensing rounds and acquisitions.
Maersk Oil transfered the operation of two blocks, BM-C-37 and BM-C-38, in 2011, in a farm-out agreement. Two exploration wells were drilled in these blocks. Maersk Oil now holds 30% interest in the blocks.
In 2010, it acquired a 20% interest in Block BM-C-34. Both postsalt and presalt exploration is ongoing in this block with four wells drilled since acquisition and one more exploration well to follow in 2013.
The Brazilian assets of SK Energy, acquired in 2010, comprise a 40% interest in the Polvo field (BM-C-8), 20% in the Wahoo discovery (BM-C-30) and 27% in the Itaipu discovery (BM-C-32). Since the acquisition, one appraisal well was drilled in Itaipu and up to three appraisal wells may be drilled at Wahoo and Itaipu in 2013.
The ‘Whale Park’ complex of oil fields, located just north of Itaipu and Wahoo, offshore Brazil, illustrate the quality of the Brazilian presalt in this area. Any presalt acreage in Brazil will now be licenced under new and more onerous production-sharing arrangements. But Maersk Oil has secured access to Brazilian presalt resource under legacy terms, through Itaipu and Wahoo, with a significant potential for value creation.
Production
Maersk Oil is planning to ramp up production, with a goal of 400,000boe/d by 2020. In Q3 2013, the company produced 229,000boe/d, up from 226,000boe/d, a 1.3% increase from Q2, but down 4.6% from a year earlier. The majority of production comes from Qatar.
Brazil is a minor contributor; the company's share of production in Brazil dropped to 4000 boe/d in Q3 2013, from 6000 boe/d in Q3 2012.
Maersk Oil is part of AP Moeller-Maersk AS.
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