Brazil Petrobras Breaks Record Producing 2 Million Oil Barrels Daily

Petrobras, Brazil's state-controlled oil and gas multinational informed that domestic oil output increased 1.2% in September, compared with August, to a record high as it completed platform maintenance and boosted output at some wells. The new record is 2 million bpd from 1.98 million bpd in August.

In a release, Petrobras said Cidade de São Vicente floating production platform was back online; maintenance of the P-19 platform had been completed plus increased production at wells in the Marlim Sul and Caratinga fields. Moreover production began at the Piranema field off the cost of northern Brazil.

Output outside Brazil rose to 149,300 bpd in September from 146,900 bpd the month earlier, taking the company's total production, including natural gas liquids, to 2.15 million bpd.

In related news Petrobras is expected to begin drilling in November near the giant Tupi field in offshore areas. The exploration is the first step in a proposed Petrobras capitalization plan in which the Brazilian government would give it drilling rights to offshore acreage in exchange for new shares, effectively giving the company more resources for its offshore exploration push.

The capitalization plan is based on Petrobras finding at least 5 billion barrels of oil in areas near the promising sub-salt find Tupi, believed to hold 5 billion to 8 billion barrels below a thick layer of salt deep under the ocean's surface.

Petrobras is expected to move two rigs away from other projects to concentrate on the region.

The plan is part of a broad overhaul of the oil sector proposed in August by Brazilian President Luiz Inácio Lula da Silva to give the government greater control over the industry and more of the revenues from the promising sub-salt areas.

Mercopress