Equinor Deploys Valaris DS-17 for $9 Billion Raia Campaign in Brazil Campos Basin, Targeting 126,000 BPD and 15 Percent of Domestic Gas Supply by 2028

Equinor launched its six-well drilling campaign at the Raia natural gas project in Brazil's pre-salt Campos Basin on March 24, marking the start of the Norwegian energy major's largest international project under execution. The $9 billion development, spearheaded by the Valaris DS-17 drillship operating at water depths of approximately 2,900 meters, targets first production in 2028 and is projected to supply roughly 15 percent of Brazil's anticipated domestic gas demand at plateau.

The Raia field is located approximately 200 kilometers offshore in the Campos Basin and holds recoverable resources exceeding 1 billion barrels of oil equivalent. At full capacity, the project is designed to produce 126,000 barrels per day of oil and condensate alongside 16 million cubic meters of natural gas daily, with output transported via a 200-kilometer export pipeline to the Cabiúnas processing terminal in Rio de Janeiro state.

"Raia is Equinor's largest project under execution and marks the deepest water depth operation" in the company's portfolio, said Geir Tungesvik, Executive Vice President for Exploration and Production International at Equinor. The project is operated by Equinor with a 35 percent stake alongside Repsol Sinopec Brasil, also holding 35 percent, and Petrobras at 30 percent. Once onstream, Raia is expected to sustain production for approximately 30 years and support an estimated 50,000 direct and indirect jobs across Brazil's energy sector.

The project carries an above-average environmental profile, with a projected carbon dioxide intensity of approximately 6 kilograms per barrel of oil equivalent, well below the industry norm for comparable deepwater assets. Equinor has flagged this metric as a key differentiator in Brazil, where the government has stressed low-emission production as a condition for attracting fresh capital to offshore blocks.

Brazil Emerging as a Counterweight to Middle East Disruptions

The Raia launch comes as global oil markets contend with sustained supply pressure from Hormuz disruptions. Brent crude has averaged near $96 per barrel through April 2026, with Q2 spikes touching $115 per barrel, according to the U.S. Energy Information Administration. In that context, new deepwater barrels from Brazil's Santos and Campos basins have taken on added strategic importance for producers hedging against Middle East output volatility.

TotalEnergies demonstrated how quickly Brazilian projects can add supply when it started production from the Lapa South-West development in the Santos basin on March 11, tying three new wells back to the existing Lapa floating production, storage and offloading unit and adding approximately 25,000 barrels per day to output. That startup is part of a broader effort by the French major to grow production 3 percent annually through 2030, with Brazil carrying a disproportionate share of near-term growth. In its Q1 2026 trading update, TotalEnergies cited new production in Brazil and Libya as the principal offsets to lost Middle East volumes.

Equinor separately disclosed that its marketing, midstream and processing trading division is on track to deliver first-quarter 2026 profits exceeding its $400 million guidance, with Norwegian gas spreads and Persian Gulf supply dislocations both contributing, according to an earlier Oil Authority report. The trading windfall is providing a financial cushion as the company commits capital toward long-lead developments like Raia.

Brazil's Petrobras is likewise doubling down on domestic deepwater growth. A final investment decision for the $12 billion SEAP I project in the Sergipe-Alagoas basin targets 120,000 barrels per day of production by 2030, adding further weight to Brazil's ambition to position itself as a reliable alternative to politically exposed OPEC supply routes.

Raia Timeline and Market Context

The Raia six-well campaign is expected to conclude ahead of a targeted 2028 production startup. The FPSO unit for the project is under construction and scheduled to arrive on location in advance of first oil and gas. Equinor has described the project as central to its plan to grow international equity production by 30 percent before 2030, with Brazil accounting for the largest share of that target.

At current Brent prices, analysts estimate Raia could generate annual operating cash flows of $1.5 billion to $2 billion at plateau, making it one of the highest-return deepwater projects in Equinor's portfolio. The partnership structure, which pairs Equinor's deepwater expertise with Petrobras' in-country knowledge and Repsol Sinopec Brasil's capital commitment, mirrors the joint-venture model that has made Brazil's pre-salt zone one of the most actively drilled offshore regions in the world over the past decade.

Sources: Equinor press release, gCaptain, World Oil, OilPrice.com.