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Brazil’s Petrobras Finds Oil Again. This Time, Light and Plentiful

Petrobras rig Brazilian state-controlled gas and oil multinational Petrobras announced late last week a new oil discovery in the Campos Basin post-salt layer (carbonate reservoirs), on the northern shore of Rio de Janeiro state.

The discovery was made while drilling the well informally known as Aruanã, in Exploratory Concession BM-C-36 (block C-M-401), which is operated exclusively by Petrobras.

According to a press statement by the oil company, preliminary analyses indicate not only the presence of recoverable volumes of some 280 million barrels of light oil (28º API), but also good productivity.

Block BM-C-36 was acquired in the seventh round of bidding held by the National Petroleum Agency (ANP) on October 17 and 18 2005.

The discovery well is located nearly 120 km off the coast of Rio de Janeiro and at a water depth of 976 meters.

The discovery was proved based on assessments (lined well formation test) in reservoirs located at depths ranging from 2,993 to 3,123 meters. It will now be the object of an Assessment Plan to be submitted to the ANP.

According to information disclosed by the company, between 2007 and 2009, in geologically similar reservoirs to this one, also in Campos Basin, Petrobras drilled wells Jurará and Muçuã, at water depths of 1,200m, in Marlim Sul Field.

These wells allowed for joint estimations of 350 million recoverable barrels of oil (27º API). The development of these projects has been foreseen in the 2009-2013 Strategic Plan, which forecasts investment of US$ 174.4 billion. Early production is being deployed at platform P-51, which already produces oil in the area, and, in 2011, at platform P-56, which is currently under construction.

Petrobras recalls that the world water-depth record for production in the type of reservoir announced today (carbonates) was set at the Marlim Leste field in February 2009, with the drilling of well 7-MLL-54HP, which reached a water depth of 1,413 m.

ABr

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  • ch.c.

    continued…..
    But dont quote me badly !

    My hope, and I mean it sincerely, is that Brazil, Venezuela, Iran, Russia, Algeria, etc etc etc etc
    ALL TRIPLE THEIR OIL PRODUCTION WITHIN THE NEXT 20 YEARS !

    WHY ? What do you think then of what the oil price trend will be…in 10-20 years ? UP OR DIRTY LOW ?
    – Will Middle East countries continue to slash their production over the years JUST TO PLEASE AND allow above and other emerging nations to increase their own ? Especially knowing that their production costs are a fraction of the newer oil discoveries ?

    And last but not least :
    – Who has the knife in that game ? High or Low cost oil producers ? Middle East, Russia or Brazil-Mexico-Venezuela ?
    – Will Brazil ever agree to reduce their oil output on OPEC request to maintain higher oil price ?
    – Were we in a PoP or PoP scenario in 2008 ? Peak oil Production, or Peak oil PRICES ?
    – What do you think consumers and industries consuming oil around the world want, both in exporting and importing oil nations ? High or Low Prices ? Including consumers in Brazil…by the way.

    Conclusion :
    – High & Low costs producers will have a nasty disagreement during the 10-20 years, but not for the time being yet because too early by just a few years ! But lower costs producers are already planning “something” in their strategy !
    To put some High cost producers…CHESS MATE !
    WHO ? Time will tell, because they have no idea themselves so far ! But the High Costs Producers will have a hard time…FOR SURE AND REGARDLESS WHO THESE COUNTRIES WILL BE !

    Oil is plentifull on earth. Just no longer at the lower cost we had earlier. It is a depletion of lower oil cost…NOT THE QUANTITY ! But this was already the same since oil was discovered. NOTHING NEW….contrary to what junkies pretend.And the deeper people pump, the more expensive it was for oil exploration costs and then followed by Oil Extraction Costs…by definition !

    What an interesting future we ALL have !
    In 10 years, probably earlier, High Costs Oil Producers will have to queue and beg to oil importing nations to buy more oil from them !
    Yesss…to A SMALL extend….but at WHAT PRICE ?
    LETS FINANCE THEM NOW, MAKE SOME CHARGE OFF LATER BUT AT LOW COSTS…WHEN COMPARED TO HIGH COSTS PRODUCERS WILL HAVE TO BEAR !!!!
    Many many wells around the world will have to be closed ! NOT PROFITABLE ! nothing new either. It already happened in the past and will continuie to happen in the future.

    😉 😀 😉 😀 😉 😀 😉 😀 😉

  • ch.c.

    Dont worry ! dont worry !
    Venezuela has about 175 billion barrels of ALREADY PROVEN OIL RESERVES.
    Not Brazil to my knowledge.
    And Venezuela population is about 1/6th of Brazil population.
    Thus, at the minimum, the proven oil reserves PER CAPITA is in favor on Venezuela to the tune of at least 15 to 1 or so !

    Stupid questions now :
    Is Venezuela a rich and developed nation ?
    What about Iran, Algeria, just to name a few additional names ?

    Hi hi !

  • FORREST ALLEN BROWN

    yes with 10 billion in us money to brasil
    Royal Dutch Shell PLC is the latest in a small group of Western energy companies pumping crude out of Brazil amid intensifying international interest in the country’s deepwater oil reserves.

    The official launch of Shell’s BC-10 oil field Tuesday, off Brazil’s southeast coast, comes as the country prepares to approve long-awaited laws on how to regulate its subsalt reserves, a vast resource that has emerged as a kind of El Dorado for the global energy industry.

    Brazil has been seen as one of the most promising new oil sources ever since the massive Tupi field was discovered under a thick layer of salt in the offshore Santos Basin two years ago. More finds have followed, and it is thought the area could contain tens of billions of barrels of oil.

    Marvin Odum, director of Upstream Americas at Shell, said he believes BC-10, which is not in the subsalt, should open up more opportunities in Brazil. “I think the government will be pleased with what we’re doing there,” Mr. Odum said in an interview. But observers said it is unlikely Shell will be able to expand its presence in the subsalt beyond the three exploration licenses it already holds.

    Several other Western oil companies had licenses for the subsalt area before Tupi was found, but Brazil said it won’t grant more licenses until it has established new laws regulating the area.

    The laws are expected to reinforce the role of the national oil company Petroleo Brasileiro SA, or Petrobras, in opening up areas like the Santos Basin. They are also likely to channel Brazil’s bonanza from the new fields into a new state fund aimed at lifting millions of Brazilians out of poverty.

    Mr. Odum said there was a “significant degree of uncertainty” regarding how Brazil’s deepwater resource would be developed. But he denied that oil companies like Shell are frustrated at the government’s slow pace. The important thing isn’t the timing, Mr. Odum said, but “making sure they develop a system that’s globally competitive and that will attract investment.”

    Since Brazil opened its oil sector to foreign energy companies in the late 1990s, only a few have found oilfields and successfully brought them onstream. In June, a joint venture between Chevron Corp. and Petrobras produced the first oil from the offshore Frade field.

    Shell started pumping crude at BC-10 in July, but the field will be commissioned officially Tuesday.

    BC-10 is another example of how the international oil companies are beginning to make an impact on oil exploration and production in Brazil, said Ruaraidh Montgomery, an analyst at the oil consultancy Wood Mackenzie. In 2008, he said, foreign oil companies accounted for less than 5% of hydrocarbon liquids production in Brazil. That will rise to just under 20% by 2015, he said.

    But it hasn’t been easy for Big Oil in Brazil. British natural gas producer BG Group PLC said Tuesday that testing on a well it and Petrobras drilled in deep water offshore Brazil didn’t confirm hydrocarbons, despite signs of natural gas during drilling. It was the second high-profile failure in the subsalt in as many months: In July, Exxon Mobil Corp. and Hess Corp. also announced a dry well at the Guarani prospect.

    With BC-10, also known as Parque das Conchas, Shell has scored a number of industry firsts. Oil and gas produced at the field will be separated on the seabed, rather than on a rig or onshore. It will then be driven up nearly 6,000 feet to the surface using electric submersible pumps, each with the horsepower of a Formula 1 car engine

  • FORREST ALLEN BROWN

    so the oil rich south does not want to share it wealth
    as i see it the north can just vote to take it from them

    Rio de Janeiro state Gov. Sergio Cabral said he would oppose a new bill governing oil royalties, Brazilian media reported.

    President Luiz Inacio Lula da Silva is expected to announce the new legislation next Monday.

    “There is nothing that will make me allow Rio (de Janeiro state) to be robbed. (The state of) Sao Paulo will also be robbed,” Cabral told Agencia Estado.

    Cabral, a friend of Lula’s and one of the most influential members of the PMDB party, said he would lead protests against the “unfair” reduction in revenues for his state, which has Brazil’s largest offshore oil reserves, including those in the so-called “pre-salt” layer.

    Discovery of the pre-salt oil reserves, so called because they are located under a thick layer of salt under the ocean floor, was first announced in late 2007.

    The crude under the pre-salt layer could eventually lead to a nearly six-fold increase in Brazil’s current proven reserves of 14 billion barrels and transform the South American nation into a major oil exporter.

    The bill, which calls for giving state-controlled oil giant Petorbras a minimum 30 percent stake in the new oil fields under the pre-salt layer, is “absurd,” Cabral said.

    Rio de Janeiro state received 6.8 billion reais (some $3.72 billion) in oil royalties in 2008.

    Sao Paulo and Espiritu Santo states, which are also in southeastern Brazil, also get royalties from oil production

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