Equinor has officially commenced oil production at the Bacalhau field, situated in Brazil’s Santos Basin. With estimated recoverable reserves exceeding 1 billion barrels of oil equivalent (boe), Bacalhau stands as Equinor’s largest international asset to date. This field marks Equinor’s inaugural pre-salt project in Brazil, a region renowned for its ultra-deepwater reserves and technological challenges. The launch of Bacalhau is seen as a significant step not only for Equinor but also for the global oil market, given the scale and strategic importance of the development.
Bacalhau is located approximately 185 kilometers off the coast of Ilhabela, São Paulo, and stretches across two blocks: BM-S-8 and Carcará North. The field sits in waters deeper than 2,000 meters, highlighting the advanced engineering required for its development. The initial discovery well was drilled by Petrobras in 2012, after which Equinor assumed operatorship in 2016. This transition marked the first time an international company led a pre-salt field development in Brazil.
Strategic Partnerships and Economic Impact
The Bacalhau project is managed through a consortium of industry leaders. Equinor holds a 40% stake and serves as operator, while ExxonMobil Brasil also possesses a 40% share. Petrogal Brasil—a joint venture between Galp and Sinopec—controls 20%, with Pré-Sal Petróleo S.A. acting as PSA manager. The partnership reflects a blend of global expertise and investment, aimed at maximizing resource recovery while adhering to stringent operational standards.
An investment of $8 million has been allocated for Phase 1, which will see the drilling and commissioning of 19 wells. These wells, consisting of both producers and injectors, are expected to come online sequentially as production ramps up. Philippe Mathieu, Executive Vice President for Exploration and Production International at Equinor, stated that Bacalhau would be instrumental in generating more than $5 billion in free cashflow by 2030 from Equinor’s international portfolio. He also emphasized that the project would create approximately 50,000 jobs over its projected 30-year lifespan, delivering substantial economic benefits to Brazil.
Technological Advancements: FPSO Bacalhau Sets New Standards
Central to Bacalhau’s operations is the Floating Production Storage and Offloading (FPSO) unit named Bacalhau, operated by MODEC during its initial phase. This FPSO is among the largest ever delivered to Brazil and is equipped with state-of-the-art technology designed to boost efficiency and reduce environmental impact. The vessel measures 370 meters in length and 64 meters in width, with an oil production capacity of up to 220,000 barrels per day (bpd) and a storage capacity exceeding 2 million barrels.
The FPSO features MODEC’s M350 hull design, offering enhanced topside capacity and greater storage compared to conventional VLCC tankers. Its advanced combined-cycle gas turbines (CCGT) contribute to lower carbon emissions, with an anticipated CO2 intensity of just 9 kilograms per boe produced. Additional abatement technologies have been integrated into flaring, processing, power generation, and storage systems. This focus on sustainability positions Bacalhau as a benchmark for cost-efficient, low-emission deepwater oil production worldwide.
The FPSO arrived at its destination in the Santos Basin in February 2025 after being christened at Seatrium’s yard in Singapore in October 2024. MODEC will operate the unit during the initial phase before transferring operational responsibility to Equinor for the remainder of the license period.
Strengthening Brazil’s Energy Sector and Global Market Position
The commencement of production at Bacalhau signals a new chapter for both Equinor and Brazil’s energy sector. Anders Opedal, President and CEO of Equinor, described the event as a major milestone that brings together scale, cost-efficiency, and lower carbon intensity. The project underscores Brazil’s role as a core area for Equinor’s international growth strategy and highlights the country’s significance within the global oil landscape.
With its high-quality carbonate reservoir containing light oil, Bacalhau promises sustained output over decades. The phased ramp-up of wells will help ensure steady production levels while maintaining rigorous safety standards. The collaboration between international partners further enhances Brazil’s reputation as a destination for cutting-edge energy investments.
As operations continue to develop, Bacalhau is expected to deliver enduring value not only through job creation and economic stimulation but also by setting new benchmarks for environmental stewardship in deepwater oil extraction. The field’s progress will be closely watched by industry stakeholders seeking models for responsible resource development in challenging offshore environments.
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