Perenco Brazil announces FSO sail away as key milestone in $400m Pargo Development Plan


Perenco Brazil is pleased to announce that the Floating Storage and Offloading vessel FSO PARGO has now left Dubai and is on its way to the Pargo Cluster in the Campos Basin offshore Brazil. Once moored on location, the FSO will be central to the extension of Perenco Brazil’s offshore performance.

FSO Pargo, a double-hull vessel built in 2004 which has a 750,000 barrels storage capacity, is expected to be on location in March, moored in April and operational in August 2023, following final licensing approval. The FSO conversion work began in September 2021 at DryDocks World, Dubai to extend its service lifetime by 20 years, adapting the vessel to the Brazilian standards and including modifications, such as the installation of an external turret mooring system, a helideck, a metering skid, an extra crane, a new offloading system and export line.

Daily production from the Pargo Concession, which comprises the Pargo, Carapeba and Vermelho fields is now approximately 12,000 barrels of oil per day, an increase of almost 300% from the 2,800 barrels per day when Perenco Brazil took over the Pargo Cluster in October 2019.

Since that time, Perenco Brazil has focused on resuming operations, redeveloping the cluster and continuing to deliver multiple important investment projects as part of the Pargo Cluster Development Plan. These include an ambitious work plan for 2023: installation in January of two new pipelines from the Carapeba and Vermelho fields to the Pargo units, intensive well works with up to three simultaneous workover units in operation, the upgrade of the Pargo water treatment system, resuming operation of the Vermelho 1 and 2 platforms and reservoir assessments for potential new plays.

Combined, these projects will contribute to the company’s continuing organic growth in Brazil and will enable the next production milestone of 15,000 barrels per day by the end of 2023.

Commenting on today’s announcement Yves Postec, General Manager, Perenco Brazil, said: “We are pleased to confirm the sail away of the FSO, which is a key part of Perenco Brazil’s U$ 400 million Pargo Development Plan. Perenco´s deep technical expertise in the successful operation of mature fields has been clearly evident in the Pargo Cluster, where we have now completed three years of safe operations.

“In addition, we are making a positive impact, contributing to Brazil growth, by creating new direct and indirect jobs, increasing the state’s revenues from taxes and royalties, boosting the services industry, and through our long-term community projects with their social and economic benefits. I would like to thank our partners, and the Perenco team, and look forward to continuing to build on the momentum of the last three years.”

Perenco Brazil holds a 100% stake in the Pargo Concession. The Pargo Development Plan was formally approved by the Brazilian authorities in early 2021, along with extending Perenco’s rights on the concessions until 2040.