Petrobras Plans to Boost Production With Digital Twin

Petrobras PBR, a Brazilian oil and gas company, is set to revolutionize its offshore oil and gas production with the implementation of a cutting-edge digital twin prototype. This technology, which was successfully tested on the Cidade de Anchieta and P-57 FPSO platforms, operating in the Jubarte field, located in the pre-salt and post-salt layers offshore Espírito Santo, promises to enhance production efficiency by approximately 1%.

Developed in two years by the Brazilian company, Engineering Simulation and Scientific Software, this digital twin technology is now validated and ready for widespread use across Petrobras' offshore wells.

The Power of Digital Twin Technology

What is a Digital Twin? A digital twin is a virtual replica of a physical system, allowing for real-time monitoring, simulation and optimization. In the context of oil and gas production, a digital twin can simulate the entire production process, from the seabed to the surface, enabling operators to optimize production, anticipate potential issues and test solutions in a risk-free virtual environment.

Implementation on Petrobras Platforms: Petrobras' digital twin technology, named Lift and Flow, was first implemented on the Cidade de Anchieta and P-57 FPSO platforms.  The successful pilot project demonstrated the effectiveness of this technology in optimizing the lift and flow process—the critical phase of transporting oil from the bottom of the wells to the production platforms.

Proven Benefits of the Digital Twin

The Lift and Flow digital twin technology offers several key benefits to Petrobras:

Increased Production Efficiency: By optimizing the lift and flow process, the digital twin can increase production by roughly 1%. While this may seem modest, it represents a significant boost in efficiency across PBR's extensive offshore operations.

Real-Time Monitoring and Data Utilization: The digital twin provides real-time data on the production system, allowing operators to monitor and adjust processes on the fly. This capability is crucial for maintaining optimal production levels and preventing downtime.

Incident Prevention and Virtual Testing: One of the standout features of the digital twin is its ability to anticipate potential incidents that could compromise production. By simulating various scenarios, operators can preemptively address issues and test solutions virtually before implementing them in the real world.

Development and Expansion

The Journey of the Digital Twin Prototype: The digital twin prototype that Petrobras is now rolling out was developed through a collaborative effort led by the Espírito Santo Business Unit. Renata Baruzzi, an Engineering, Technology and Innovation engineer at Petrobras, explained that the initial prototype formed the foundation for specifying a more robust, commercial and scalable system. This development process highlights PBR's commitment to leveraging advanced technology to maintain its competitive edge in the global oil and gas industry.

Expanding Use Across Petrobras' Offshore Wells: With the successful validation of the digital twin technology, PBR plans to extend its use to all of its offshore production and injection wells. According to Sylvia Anjos, Petrobras' Exploitation and Production director, the company will begin deploying the digital twin tools in maritime wells across other units before the year's end. This expansion is expected to enhance the efficiency and safety of PBR's operations, further reinforcing its position as a leader in the offshore oil and gas sector.

The Strategic Importance of Digital Twins in Offshore Oil and Gas

Enhancing Production in Pre-Salt and Post-Salt Layers: The application of digital twin technology is particularly significant in the context of Brazil's pre-salt and post-salt layers. These geological formations, located deep beneath the seabed, contain vast reserves of oil and gas. However, extracting these resources is challenging due to the complex and high-pressure environment. The Lift and Flow digital twin provides a powerful tool for optimizing production in these difficult conditions, helping PBR to maximize output while minimizing risks.

Aligning With Petrobras' Digital Transformation Strategy: The adoption of digital twin technology is a key component of Petrobras' broader digital transformation strategy. By integrating advanced technologies like digital twins into its operations, PBR aims to improve efficiency, reduce costs and enhance safety. This strategy is crucial for maintaining competitiveness in the global energy market, where technological innovation is increasingly becoming a differentiating factor.

Conclusion

Petrobras' implementation of digital twin technology marks a significant milestone in the company's ongoing efforts to optimize its offshore oil and gas production. The Lift and Flow digital twin, validated through rigorous testing on the Cidade de Anchieta and P-57 FPSO platforms, is set to be a game-changer for PBR. Expanding the use of this technology across PBR's offshore wells, it stands to gain substantial improvements in production efficiency, safety and operational resilience. In an industry where innovation is key to staying ahead, Petrobras' digital twin initiative is a clear demonstration of its commitment to leading the way in offshore oil and gas production.

Zacks Rank and Key Picks

Currently, PBR carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like SM Energy Company, sporting a Zacks Rank #1 (Strong Buy) and The Williams Companies, Inc. WMB and MPLX LP, each carrying a Zacks Rank #2 (Buy), at present.

Denver, CO-based SM Energy is valued at $5.2 billion. The company currently pays a dividend of 72 cents per share, or 1.58%, on an annual basis.

SM, an independent energy company, engages in the acquisition, exploration, development and production of oil, gas and natural gas liquids in the state of Texas.

Oklahoma-based The Williams Companies is valued at $54.87 billion. The company currently pays a dividend of $1.9 per share, or 4.3%, on an annual basis.

WMB, together with its subsidiaries, operates as an energy infrastructure company, primarily in the United States. It functions through Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services segments.

Findlay, OH-based MPLX LP is valued at $43.48 billion. In the past year, its shares have risen 20.2%.