Equinor makes Guanxuma discovery in Brazil

Norway’s Equinor drilled a wildcat well in the Guanxuma prospect in Brazil, discovering hydrocarbons, the company’s CFO said on Thursday during a conference call regarding quarterly results.

Hans Jakob Hegge told investors that hydrocarbons volumes and commercial potential were under evaluation, but called the discovery “promising.” The well is being drilled to 6,600 metres with Seadrill’s West Saturn drillship.

Located in the Santos Basin, Guanxuma is thought to hold 700 million-1.3 billion boe in recoverable reserves. The prospect is part of the BM-S-8 block near the pre-salt Carcará field, which holds an estimated 2 billion boe in recoverable reserves.

Equinor is developing BM-S-8 with a 36.5% operating stake, along with partners ExxonMobil (36.5%), Petrogal (17%) and Barra Energia (10%). As part of a plan to unitise the Carcará field with the Norte de Carcará area, both Equinor and ExxonMobil are expected to raise their stakes to 40% before the end of the year, while Petrogal’s interest climbs to 20% and Barra Energia exits.

Hegge also said that Equinor will likely use the West Saturn to drill an appraisal well at Norte de Carcará following the end of work at Guanxuma, and drill another appraisal well at the original Carcará field in 2019.

Additionally, the company is considering drilling three more exploration wells in the Espírito Santo Basin.