The project will feature the first tension leg well platform in Brazil, which will be connected to a floating production, storage, and offloading vessel. The completed facility will be capable of producing up to 140,000 barrels of crude oil per day. First production from the Papa Terra project is expected in 2013.
Papa Terra is a heavy oil subsea development located within Block BC-20 of the southern Campos basin. It is situated 70 miles (110km) offshore in water depths of approximately 3,900ft (1,190mt).
George Kirkland, vice chairman of Chevron, said: “This decision confirms our commitment to developing new opportunities in an important basin and adds to our strong queue of major capital projects.”
Chevron holds a 37.5% interest in the Petrobras-operated Papa Terra project, which they estimate will cost $5.2bn. The project is estimated to recover 380 million barrels of oil.
In addition to the Papa Terra and Frade projects in the Campos basin, Chevron also holds a 30% non-operated interest in the Maromba field where work continues to select an optimal development plan. In the Santos basin, Chevron holds a 20% non-operated interest in Block BS-4 where the company continues to evaluate development plans to commercialize the Atlanta and Oliva fields.
