Petrobras 'clarifies' BG statement over Tupi, Guara finds

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Dec. 10 -- Brazil’s Petroleo Brazileiro SA (Petrobras) has taken exception to earlier claims by BG Group concerning the estimated volumes of recoverable oil equivalent, as well as the capital and production costs of the Tupi and Guara fields in the Santos basin off Brazil.

“Petrobras, as the operator of the consortium, reiterates the estimates that have already been announced, of 5-8 billion boe recoverable in Tupi and Iracema (Block BM-S-11), and 1.1-2 billion boe recoverable in Guara (Block BM-S-9),” the firm said, reiterating earlier claims (OGJ Online, Dec. 6, 2010).

The Brazilian firm also reasserted its view of “the economic feasibility of these discoveries at price levels ranging from $35-40/bbl, in accordance with the variables of its Business Plan 2010-14."

Underlining its displeasure with BG Group, Petrobras “also highlights that the disclosure made by BG occurred without the compliance with the rules set forth under the joint operations agreement.”

Operator Petrobras holds a 65% stake in the Tupi, Iracema, and Iara discoveries in BM-S-11 concession. BG holds 25%, and Petrogal, 10%. In the Guara and Carioca discoveries in the BM-S-9 concession, operator Petrobras holds a 45% stake. BG Group holds a 30% stake, and Repsol holds 25%.

BG was not available for comment on the Petrobras statement. However, the difference between the two sets of figures is substantial, with BG’s oil equivalent reserves estimate amounting to less than half of Petrobras’.

The difference emerged following a Dec. 9 statement by the British firm relating to the first two floating production, storage, and offloading vessels in Tupi field and the first FPSO in Guara field.

According to BG, the first FPSO in Tupi field has a production capacity of 100,000 b/d of oil and as much as 177 MMscfd of gas. It started production in October.

BG said the second FPSO in Tupi field is due on stream in 2013 and will have a production capacity of 120,000 b/d of oil and 177 MMscfd of gas.

A similar FPSO will be deployed in Guara and also is due on stream in 2013, BG said, adding that all three FPSOs will be leased.

It said the gas export pipeline with capacity to service all three FPSOs is in place, linking the Tupi area to Brazilian domestic gas infrastructure via the Petrobras Mexilhao platform.

“The three FPSOs are expected to recover total gross reserves of…2.2 billion boe—600 million boe net to BG Group—within the concession periods, utilizing a total of…40 production and injection wells,” BG said, adding that the Tupi concession ends in 2037, and that the Guara concession ends in 2039.

“In light of the outstanding reservoir characteristics and high recovery per well, BG Group anticipates very low unit technical costs for this initial phase of development, amounting to capital costs of $5/boe and operating costs of $9/boe,” the firm said.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

Shell makes FID on Appomattox deepwater development in Gulf of Mexico

07/01/2015 Royal Dutch Shell PLC has taken a final investment decision (FID) on the Appomattox deepwater development, authorizing construction and installatio...

BHP, Woodside move to decommission Stybarrow field

07/01/2015 BHP Billiton Ltd. and Woodside Petroleum Ltd. have started preparations for decommissioning of the Stybarrow group of oil fields in production lice...

Tullow Oil provides production update on Jubilee, other fields

07/01/2015 Tullow Oil PLC reported that gross production for the Jubilee field offshore Ghana averaged 105,000 b/d in this year’s first half, up from 102,000 ...

USGS: Water usage for fracturing varies widely across shale plays

07/01/2015 The volume of water required to hydraulically fracture wells varies widely across the country, according to the first national analysis and map of ...

Contract let for converting FPSO for use in Libra field

06/30/2015 Jurong Shipyard Pte. Ltd. has let a topsides detailed engineering and procurement services contract to Technip SA as part of the conversion of a sh...

Survey begins of collaboration on the UKCS

06/30/2015

Deloitte has begun a survey about collaboration in the oil and gas producing industry of the UK Continental Shelf.

CNOOC starts oil production from Bozhong 28/34 oil fields

06/30/2015

CNOOC Ltd. reported the start of production from its Bozhong 28/34 oil fields comprehensive adjustment project.

Statoil submits amended PDO for Gullfaks license

06/30/2015 Statoil ASA has submitted an amendment to the plan for development and operations (PDO) for the Gullfaks license for the first phase of the Shetlan...
White Papers

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected