New Frontiers of Exploration Triple Price of Oil Exploration in Brazil

Petrobras' platform in Bahia, BrazilIn five years, the cost of oil extraction in Brazil has tripled, US$ 3.42 per barrel in late 2003 to US$ 10.42 per barrel in late 2008. The conclusion was culled from a survey conducted by the Institute of Applied Economic Research (Ipea) in partnership with the Federal University of Rio de Janeiro (UFRJ).

According to the Ipea, the cost increase is a result of issues such as shortage of equipment and services and oil drilling at increasingly complex areas, such as offshore exploration at great depths.

“The oil industry has already mapped out the low-cost fields using the existing technology. These have already been discovered. Thus, the new findings tend to be more expensive. As a rule, the new frontiers of exploration will be dearer,” said UFRJ researcher Hélder Queiroz.

He believes that the oil spill underway for over a month in the Gulf of Mexico, off of the United States coast, should contribute for costs to rise even further in coming years.

“There will be a strengthening of prudential measures in production and exploration routines. After the accident, new practices will be established in the industry, in order to increase safety and prevent another disaster,” said Queiroz.

New Discovery

Petrobras, Brazil’s state-controlled oil and gas multinational, announced the discovery of more oil in the pre-salt area of the Campos Basin, off the Northern coast of the state littoral of Rio de Janeiro.

In a statement, the oil company informs that the oil is located at a depth of 648 meters, in the Marlim Field, and that approximately 5,000 meters were drilled in order for the reservoir to be reached.

“Preliminary estimates point to potential recoverable around 380 million barrels of oil equivalent. Further testing should assess the productivity of these reservoirs,” says the statement.

According to Petrobras, the new well is located in an area near the existing infrastructure at the Marlim and Voador fields, and 4.5 kilometers away from the P-27 platform, “which should make the field’s development easier, shorten the period required for production to start, and possibly reduce the investment needed.”

The state-owned company informed that the new discovery will be submitted soon to the National Petroleum, Natural Gas and Biofuel Agency (ANP, in the Portuguese acronym).

Petrochemical Fair

Starting June 21st and until June 24, São Paulo city will host the first edition of the International Fair for Chemical and Petrochemical Industry Suppliers (Química & Petroquímica). The exhibition, which will be held at the Anhembi Exhibition Pavilion, is promoted by Reed Exhibitions Alcântara Machado and sponsored by Petrobras.

Exhibitors at the fair will include manufacturers of machinery, equipment, parts and inputs for the chemical and petrochemical segments. Organizers are expecting to receive 180 brands and approximately 12,000 buyers from 15 countries.

Exhibitors that have already confirmed their presence include Plasmatig, Hollbras, Schütz Vasitex, Vanasa Multigas, Cestari, Suatrans, Sigmafire by Clayton, ABS Group, Andritz Separation,Anhembi Borrachas, Apexfil, Arxo, ABNT, Conesteel, Samia Internacional, Eesferas Douglas, Dresser, Ega Master, Eka, Haver & Bocker, Jemp, KS Tools, Labsynth, Longa, Luvez, Mausa, Montex, Soldas, Symbol Vácuo, Tetralon Bombas, among others.

During the period of the fair, the 13th Responsible Action Congress and the 2nd Latin American Conference on Process Safety will also be held.

The meetings focus on themes such as progress in the field of process safety and challenges facing the segment in fields such as environment, health and social responsibility. Brazil is hosting the meeting for the first time.

Service

Química & Petroquímica
Date: June 21st to 24th, 2010
Time: 01:00 pm to 08:00 pm
Place: Anhembi Exhibition Pavilion – São Paulo
Site: www.quimica-petroquimica.com.br

ABr

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  • Show Comments (1)

  • ch.c.

    the cost of oil extraction in Brazil has tripled, US$ 3.42 per barrel in late 2003 to US$ 10.42 per barrel in late 2008.
    MORE THAN DOUBTFUL FOR YOUR DEEP VERY DEEP TUPI FIELDS ETC !

    Petrobras pretends adamantly that the Tupi fields are profitable at US$ 35.- per barrel. NOT 10 dollars !
    And profitable at US$ 35.- per barrel the same as the Braz-zeroes pretended that their sugarcane ethanol was profitable at US$ 35.- oil equivalent but were losing money in 2008 when the average for the year was US$ 99.- !

    That is Braz-zeroes algorythm : LIES LIES AND MORE LIES !

    😮

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