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Equinor , ExxonMobil and Petrogal Brasil said on Tuesday they would proceed with an $8-billion development of Brazil’s Bacalhau oil discovery.

First oil from the field, which will be operated by Norway’s Equinor, is expected in 2024, with output set to reach 220,000 barrels per day, the companies said in a joint statement.

“Estimated recoverable reserves for the first phase are more than one billion barrels of oil,” said Equinor Executive Vice President Arne Sigve Nylund.

The field has a break even cost of below $35 per barrel, Equinor said, around half the current market price of crude oil.

Equinor and Exxon each hold a 40 per cent stake in Bacalhau, while Petrogal Brasil holds 20 per cent. Brazilian government company Pre-sal Petroleo SA (PPSA) is also a partner via a so-called production sharing agreement, ensuring public involvement in the project.

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