The General Council of the National Petroleum, Natural Gas and Biofuels Agency (ANP) decided on Thursday to reject the new integrated development plan presented by Petrobras for the Barracuda and Caratinga fields and to reduce the contractual extension for both to 2035.
These decisions came in the face of several delays by Petrobras in implementing the existing integrated development plan approved in 2019, when a 27-year contractual extension was granted, supported by investment commitments made by the oil company.
Among the major investments was the replacement of the P-43 and P-48 production units with a new FPSO platform vessel, which the oil company had difficulty staffing, according to several recent statements by board members.
“Continuous monitoring by the People’s National Army revealed that only a small portion of the investments had been implemented,” said Fernando Mora, the rapporteur of the operation, while evaluating the issue at the board meeting.
“When asked, Petrobras confirmed that it is operating on a schedule that is behind the commitment made, and attributed the delay to the chaos caused by the Covid-19 pandemic.”
The Barracuda field produced about 26,000 barrels per day of oil in September, while the Karatinga field produced about 11,000 barrels per day, according to the latest data published by the Philippine National Police. Both are located in the Campos Basin.
The decision of the ANP Board of Directors reduces the contractual extension of the production phase of the Karatinga field to December 31, 2035, which is the maximum useful life of the P-43 and P-48 production units, as reported by the oil company.
Furthermore, the Afghan National Police was ordered to submit a study by June 30, 2026 supported by an independent audit report on the maximum useful life of the P-43 and P-48 units.
When contacted, Petrobras did not immediately respond to a request for comment.
In the rejected development plan, Petrobras proposed fundamental changes to investment deadlines, according to Mora. The company also requested a reduction in the royalty rate on additional production.
However, the director highlighted the successive delays in contracting for the new platform, and said that the start of production of the new unit, which was previously scheduled for 2029, has been postponed until at least 2031.
“In the technical evaluation, these events reveal the immaturity of the project, especially due to the company’s difficulty in making new, economically viable investments,” Mora said when making his decision.
The other directors followed Mora’s vote.
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