Chinese company CNOOC Limited plans to begin drilling its first exploratory well on the Brazilian continental shelf in the second half of this decade. The work will focus on deepwater areas of the productive Santos Basin.

Acquisition of the Block and Drilling Plans

In December 2023, CNOOC Limited acquired block S-M-1813 in the Santos Basin during Brazil’s fourth permanent offer round. The company paid a signing bonus of approximately $3.9 million for this block. According to documents submitted to Brazil’s federal environmental agency Ibama, CNOOC has requested a license to drill up to three wells in this block.

The project envisions drilling the first exploratory well, Panda-1, in 2029. The decision to drill two additional wells, Panda-2 and Panda-3, will depend on the results of the initial well.

Technical Details and Infrastructure

For the drilling of Panda-1 at a depth of over 2,000 meters, the company plans to contract a drilling rig at a later stage.

Geological Features of the Region

The southern part of the Santos Basin remains insufficiently explored, but in recent years this area has attracted growing interest from oil companies. In addition to CNOOC Limited, companies such as Shell, TotalEnergies, and Karoon Energy are conducting operations on 22 exploratory blocks in the southern tip of the basin. These blocks are located on the edge of the Santos Basin, bordering the Pelotas Basin to the south, and are situated several dozen kilometers west of the large Boomerang field discovered by BP.

Company Share and Current Production

CNOOC Limited holds a 100% stake in block S-M-1813. Currently, the company produces around 151,700 barrels of oil and 8.3 million cubic meters of natural gas per day in Brazil, thanks to its shares in the Buzios and Mero fields operated by Petrobras.