(Bloomberg) -- Equinor ASA has signed “all major contracts” to build a major natural gas development off the coast of Brazil that is expected to start production in 2028, Chief Executive Officer Anders Opedal said Monday.
The Norwegian oil major has secured suppliers to build a floating production vessel, drill production wells and install sea-bed infrastructure such as a pipeline, Opedal told reporters on the sidelines of an oil conference in Rio de Janeiro. Valaris Ltd earlier this year won a $498 million contract to drill wells for the the project, known as Raia. The project will cost an estimated $9 billion and could supply 15% of Brazilian gas demand when it comes online.
Raia is part of Brazil’s efforts to increase domestic gas supplies and bring down prices for industrial and residential consumers. In addition to producing from offshore fields, Brazil is looking to import gas from the Vaca Muerta region in Argentina, and also wants oil producers including Petroleo Brasileiro SA to send more gas ashore instead of reinjecting it in offshore fields.
Equinor is developing another offshore oil project in Brazil known as Bacalhau. Opedal said it isn’t clear yet if it will be economically viable to build a pipeline and related infrastructure to ship gas to shore, and such an undertaking might need to be done in partnership with other producers to share costs. First oil at Bacalhau is on target for 2025.
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