QGEP Puts off Atlanta Output Over FPSO Delay
Thursday 16 March 2017
Brazilian independent Queiroz Galvao E&P (QGEP) has postponed output from the Atlanta heavy oil field in the Santos basin to early 2018, due to delays in the conversion of the Petrojarl I floating production, storage and offloading vessel.
Canadian floater specialist Teekay Offshore is facing larger than expected difficulties with upgrades related to the floater’s topsides integration at a Damen ship repair yard in the Netherlands.
“The ongoing challenges related to the adaptation of the Petrojarl I FPSO resulted in further delays in the delivery date, which is scheduled for the fourth quarter of 2017, with first oil targeted for the beginning of 2018,” QGEP said in a statement on Wednesday night.
“The negotiations with Teekay, which is leading the FPSO adaptation in Rotterdam, are moving forward, and we are closely monitoring the situation.”
Teekay had warned in early November that it was facing delays with the floater, but did not provide key details.
The FPSO will have production capacity of 30,000 barrels per day of oil and storage room for 180,000 barrels of oil.
Output will initially reach up to 20,000 bpd through two wells linked to the FPSO, but the QGEP-led consortium, which also includes Barra Energia and OGPar, may choose to drill a third well later this year.
QGEP, headed by chief executive Lincoln Guardado, also reported a net profit of 51.2 million reais ($16.5 million) in the fourth quarter of 2016, compared to a net loss of 159.4 million reais in the same period a year ago, mainly due to lower exploration expenses. Net revenues decreased 22.2% to 103.9 million reais.
For 2016, QGEP recorded a 63.3% increase in net profits to 152.9 million reais, with revenues down 4% to 476.5 million reais. The company ended the year with a net cash position of 977.9 million reais.