Wedoany.com Report-Oct. 20, The floating production storage and offloading vessel (FPSO) Bacalhau, one of the largest and most advanced of its kind, has achieved first oil production at the Bacalhau field in Brazil. Norway’s energy company Equinor announced that oil began flowing on October 15, marking a significant milestone in its global operations and the company’s largest offshore project outside Norway.

Equinor's massive FSO produced its first oil in Brazil last week

Located in Brazil’s Santos Basin pre-salt region, the Bacalhau field lies in ultra-deep waters exceeding 2,000 meters and holds recoverable reserves of over one billion barrels of oil equivalent. Crude was first discovered there in 2012 by Petrobras, and Equinor assumed operatorship in 2016. The company leads the project alongside partners ExxonMobil Brasil, Petrogal Brasil (JV Galp|Sinopec), and Pré-sal Petróleo SA (PPSA). Together, they describe Bacalhau as a new-generation project that combines production scale, efficiency, and reduced carbon intensity.

The FPSO Bacalhau measures 370 meters in length and 64 meters in width, permanently stationed about 115 miles off Ilhabela, São Paulo. It is moored at a depth of approximately 2,050 meters and can produce up to 220,000 barrels of crude oil per day, with a minimum storage capacity of two million barrels. Built by Japan’s MODEC, the vessel integrates a gas turbine combined cycle system, reducing CO₂ emissions to roughly nine kilograms per barrel, about half the global industry average. MODEC’s M350 hull design enhances topside capacity, extends storage capability, and ensures a longer operational lifespan.

Equinor has invested $8 billion in Bacalhau Phase 1, which began drilling in 2022 and includes 19 wells. The project is expected to operate for 30 years and create around 50,000 jobs throughout its life cycle. Equinor emphasized its ongoing commitment to Brazil’s energy development, highlighting planned investments of $25 billion by 2030.

The Bacalhau development faced considerable technical challenges due to the reservoir’s depth and pressure, reaching 900 bar, making it one of Equinor’s most complex undertakings. Despite this, the company reported about 70 million work hours completed with strong safety performance.

Anders Opedal, President and CEO of Equinor, stated: “The safe start-up of Bacalhau marks a major milestone for Equinor. Bacalhau represents a new generation of projects that bring together scale, cost-efficiency, and lower carbon intensity. With this development, we are strengthening the longevity of our oil and gas production and securing value creation for decades to come.”

Equinor expects Bacalhau to contribute substantially to its goal of generating over $5 billion in free cash flow by 2030 from international operations. MODEC will manage FPSO operations during the initial phase, after which Equinor will take over until the end of the license period. The vessel also reinforces MODEC’s established position in Brazil’s offshore oil and gas market, marking its 17th FPSO/FSO delivery in the country and its first collaboration with Equinor.