• 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Your email address will not be published.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

A Few Reasons Why the World Is Taking Its Money to Grow It in Brazil

According to information disclosed this Wednesday, November 28, by the Brazilian Central Bank (BC), ...

Sean Goldman’s Stepfather Tells His Side and Goes Back to Court to Get Boy

The Brazilian family of the American 9-year-old boy Sean Goldman, who returned to the ...

Cabo Branco beach in João Pessoa, Brazil

The More I Hear About the US the More I Want to Move to Brazil

It is no secret that I am one American thrilled with Brazil and especially ...

Lula Finds out the Brazilian Military Still Pack a Heavy Punch

Brazilian president Luiz Inácio Lula da Silva fired a four-star general, Maynard Marques de ...

Brazilian Businessman, 57, Crosses Strait of Gibraltar Swimming

Swimming across the Strait of Gibraltar non-stop for 22 kilometers (13.7 miles) until touching ...

Not So Modest Plan: To Make Brazil World’s Largest Organic Food Producer

Brazil will be the theme of the world’s largest natural food fair, the BioFach, ...

Party

Anthropologist and Senator Darcy Ribeiro died on February 17. He was considered by most ...

Ecological Heaters from Brazil Save Money and Recycle Plastic Containers

The largest ecological heater of Brazil, using the sun, was installed in the city ...

Three Tons of Marijuana Seized in Brazilian Northeast

The Brazilian Federal Police (PF) intends to intensify its efforts to combat the cultivation ...

Worker at Manaus free zone in Amazonas state, Brazil

Pioneer Brazil Invests US$ 13 Million in New Amazonas Factory

Company Pioneer Brazil, a manufacturer of audio equipment for automobiles, will invest US$ 12.7 ...