Galp Plans 40% Output Boost in Brazil

Portugal’s energy company Galp plans to increase its oil and gas production in Brazil by about 40% over the coming years, driven by the development of the offshore Bacalhau field in the Santos Basin. Currently, Galp produces 110,000 barrels of oil equivalent per day through a 70-30 joint venture with China’s Sinopec. The venture holds a 20% stake in Bacalhau, while Norway’s Equinor, the field’s operator, and U.S.-based ExxonMobil each own 40%. Reuters

A floating production, storage, and offloading (FPSO) vessel with a 220,000-barrel daily capacity arrived at Bacalhau in February, with first production expected in the third quarter. According to Nuno Bastos, Galp’s upstream head, the production plateau could take longer to reach compared to the 11 months it took for a similar FPSO in the Tupi-Iracema field, due to Bacalhau’s higher capacity.Reuters

Equinor estimates more than 1 billion barrels in recoverable reserves in Bacalhau’s first development phase. Galp’s production boost will depend on the ramp-up to full FPSO capacity, which the company aims to achieve efficiently, though no firm timeline has been provided.