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Petrobras Announces Another Deep-Water Oil Find
23 May 2008
The consortium formed by Petrobras (66%, operator), Shell (20%), and Galp Energia (14%), has proved the presence of oil in another block in the ultra-deep waters in the Santos Basin near the huge offshore Tupi field. The Tupi field alone, which represents only a small part of this oil region, has a recoverable volume of between 5 to 8 billion barrels of oil and natural gas. (Earlier post.)
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| The new find is in block BM-S-8. Other hydrocarbon fields in yellow. Click to enlarge. Source: Petrobras |
Preliminary analysis of the new find indicates oil gravity is between 25 and 28 ºAPI—i.e., medium grade oil comparable to that of the other pre-salt oils found in the Santos Basin.
The pioneer well is located some 250 km off the coast of the state of São Paulo, in 2,139 meters (1.33 miles) of water. Drilling was completed on 18 May at a depth of 6,773 meters (22,221 feet) and the discovery was proved via an oil sampling by means of a formation test in reservoirs situated at a depth of nearly 6,000 meters.
On Monday, Brazilian President Luiz Inácio Lula da Silva will launch the Petrobras Fleet and Support Vessel Modernization and Expansion Program, the biggest vessel contracting plan to date in Brazil.
Included in the plan is the construction of 40 drilling ships and semi-submersible drilling platforms to operate in deep and ultra-deep waters. The plan foresees the construction and receipt of the 40 units through 2017, and priority will be given to building them in Brazil.
An invitation to tender is currently underway for the chartering of 24 vessels to support exploration and production activities. Bidding is expected to take place for another 122 of such vessels in the next six years. The 146 support vessels will be built in Brazil.
May 23, 2008 in Brief | Permalink | Comments (3) | TrackBack (0)
Comments
Posted by: Harvey D | May 23, 2008 at 04:37 PM
Well, naturally. Why would they consume it themselves when they can sell it to the petroholics next door at a ridiculously inflated price?
Posted by: richard schumacher | May 23, 2008 at 06:49 PM
Richard:
Brazil is currently the nation with the most sustainable ethanol industry supplying a very large percentage of their liquid fuel and exporting some.
Oil is a nice to have extra for Brazil and most of it will be exported.
As oil price will stay high for years to come, (OPEC can see to that) Brazil oil industry represents a good investment potential unless it is further nationalized. If so, other associated industries will also represent good opportunities.
Brazil has the potential to become one of the (new) world leading economies.
Posted by: | May 24, 2008 at 08:27 AM
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This will be a powerful economic booster for Brazil, specially if all the equipment and facilities required are built in Brazil. Good investment opportunities ahead.
Wonder what effect it will eventually have on the local sugar cane ethanol industries.
Of course, oil could easily be exported to neigbouring countries, USA, Europe and Asia.