Brazilian player’s shares take a hit as production halts at deep-water field



Brazilian independent 3R Petroleum’s shares were down more than 6% on Tuesday after the company temporarily interrupted production at the Papa Terra field in the Campos basin.

Papa Terra has been plagued with problems since original operator state-controlled company Petrobras started output from the deep-water field nearly a decade ago.

Production at Papa Terra peaked at 34,000 barrels per day of oil in June 2014 but reservoirs issued prevented the field from reaching its full potential.

Last year, a boiler equipment malfunction halted production in the cluster for months and now 3R is facing new issues in the Campos basin development.

Output at Papa Terra was interrupted on 15 May due to restrictions on the offloading system of the 3R-3 floating production, storage and offloading vessel, formerly known as P-63, after the unit reached the limit of the available storage capacity of its oil tankers.

The company two days earlier identified damage on the hose that is used in the offloading of oil from the 3R-3 FPSO to the shuttle tanker.

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“The company has already started the necessary procedures to replace the damaged section, estimated to take up to 10 days, allowing the asset to resume production,” 3R said in a statement.

3R added the company is in the process of increasing the storage capacity of the 3R-3 FPSO, which will allow the connection of another producing well and increase the period between offloading operations.

The Papa Terra development features the 3R-2 dry-tree tension-leg wellhead platform, formerly known as P-61, linked to the 3R-3 FPSO in water depths of approximately 1190 metres. The pair offers capacity to produce up to 140,000 bpd.

3R operates Papa Terra with a 53.13% stake and is partnered by US supermajor Chevron on 37.5% and Norway’s DBO Energy on 9.37%.