Argus Media Limited

05/16/2022 | News release | Distributed by Public on 05/16/2022 11:31

Origem doubles Alagoas cluster gas production

Origem Energia said it more than doubled natural gas production in the Pilar and Furado fields of its recently acquired Alagoas cluster in Brazil.

Origem is one of the nine gas suppliers participating at the new Brazilian gas market, selling gas to distributors and negotiating with free-market consumers. After 100 days of operation, the company managed to increase production in the fields to 814,000m³/d, up from 396,000m³/d.

The company bought the 14-field cluster from state-controlled Petrobras at the beginning of the year for $300mn. The Alagoas cluster includes a 1.8mn m³/d gas processing unit and seven onshore and shallow water production concessions, which had been operated by Petrobras since the 1970s. Also included in the deal were two treatment stations and a network of 230km (143mi) of pipelines with direct access to the TAMAC oil export terminal, located in the Alagoas state capital.

Origem estimates it will pay Alagoas state government 2.3 times more royalties from the cluster this year than in 2021, at R110mn ($21.54mn).

By Rebecca Gompertz