Legislation that Brazil enacted in 1997 to end the 43-year-old monopoly of state petroleum firm Petroleo Brasileiro SA has spawned a rush among foreign firms to participate in Brazilian E&D, including joint ventures with Petrobras (OGJ, Sept. 14, 1998, p. 33).
PennzEnergy last month signed a participation agreement with Petrobras that calls for joint exploration of Block BSeal4 in the Sergipe-Alagoas basin off eastern Brazil.
PennzEnergy has a 30% working interest in the block and will serve as operator; Petrobras has a 70% interest.
The 1,300 sq km block off the state of Sergipe straddles the coast onshore and extends offshore to water depths of up to 200 m. The block is on trend with offshore oil production to the south, in the Campos and Santos basins.
PennzEnergy CEO and Pres. Stephen Chesebro' said, "We are eager to evaluate the BSeal4 block, which we believe has the potential to extend the productive fairway on Brazil's easternmost coast."
Under terms of the agreement, the partners will acquire 250-350 sq km of 3D seismic data and drill one exploratory well during the next 21/2 years.
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