RIO DE JANEIRO – Petrobras says it will mothball the Merluza platform (PMLZ-1) in the shallow-water Santos basin off Brazil.
Production from the platform stopped in March 2020 after the abrupt reduction in demand for natural gas.
The company said hibernation will allow the reduction of operating expenses and the transfer of professionals to other Petrobras units. This decision, it added, is in line with the portfolio optimization strategy and the improvement of the company’s capital allocation.
In addition, the company said mothballing the platform will not impact the Merluza Polo divestment process and the supply of natural gas to the Baixada Santista market.
The Merluza Polo is comprised of the Merluza and Lagosta concessions, in which Petrobras has a 100% stake.
Located in 135 m (443) of water, the PMLZ-1 is the oldest platform in operation in the basin. Production began in 1993. Average production last year was 3,600 boe/d of natural and condensed gas.