• Categories
  • Archives

Brazil’s Oil Field Libra Will Cost US$ 80 Bi do Develop

Brazilian Petrobras Brazil’s biggest oil field, Libra, will cost US$ 80 billion to develop, according to a senior executive with France’s Total, one of five consortium members participating in the project. 

Total’s vice president of exploration and production for the Americas, Ladislas Paszkiewicz, made the estimate at the Rio Oil & Gas conference, happening now.

Libra, the first of Brazil’s pre-salt fields to have been auctioned off, holds reserves estimated at between 8-12 billion barrels of recoverable crude, according to official calculations.

Exploration rights to the field were awarded last year to a consortium made up of Brazilian state-controlled Petrobras, which has a 40% stake; Royal Dutch Shell, 20%; Total, 20%; and China’s CNPC and CNOOC, each of which has a 10% stake.

The consortium, the sole bidder in last October’s auction, paid a 15-billion-reais (roughly US$ 6.9 billion) signing bonus to the Brazilian treasury after obtaining the rights to the field for 35 years.

Under the contract terms, the companies will pay royalties and also deliver 41.65% of profit oil, (oil produced after subtracting out production costs) to the Brazilian government.

Despite the high costs of the project, Paszkiewicz said he expects Libra will deliver a return on the companies’ investment “for many decades.”

The pre-salt region is so-named because its reserves are located under water, rocks and a shifting layer of salt at depths of up to 7,000 meters below the surface of the Atlantic.

That offshore region, the main focus of investment by Petrobras, could vastly increase Brazil’s proved reserves and turn the country into a major crude exporter. The pre-salt area is governed by a special regulatory regime that allows only for production-sharing contracts, not outright concessions.

Mercopress

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil: Farewell to a Cursed Poet

Although shunned for a time by publishers due to her erotic books, writer Hilda ...

Brazilian business women

Brazil Women Beat French and Swedish Colleagues in Entrepreneurship

According to data from the London-based Global Entrepreneurship Monitor (GEM) survey, released this Wednesday, ...

Despite Record Beef Exports Brazilian Cattle Ranchers Can’t Make a Profit

For the third consecutive year, Brazilian cattle ranchers had a loss of revenue, in ...

China’s Earthquake Shortens Brazil’s BRIC Summit. Chinese Leader Cuts Short Trip

The leaders from the world’s four biggest emerging economies – Brazil, Russia, India and ...

Writer’s Guidelines

Your Article and Photo BRAZZIL is always open to new articles. We are interested ...

There Won’t Be Hunger in Brazil in One Year, Says Lula’s Aide

By the end of Brazilian President Luiz Inácio Lula da Silva’s mandate, no family ...

Brazil and Paraguay Border Areas to Be Helped by Rural Accord

On Friday, March 10, during the 2nd International Conference on Agrarian Reform and Rural ...

US Company Flies You to Rio to Get a Brazilian Butt

CosmeticVacations, a US medical tourism operator based in Rio de Janeiro, Brazil, has announced ...

Sarney Blarney

A Federal Police raid, to check on allegations of misappropriation of public funds by ...

Brazil and India Join Forces to Build Railroad Wagons

The city of Santa Maria, in the southernmost Brazilian state of Rio Grande do ...