Coplex, Petrobas to develop fields off Brazil

April 26, 1999
Where Coplex, Petrobras will develop oil, gas off Brazil [135,778 bytes] Coplex Resources NL, Hobart, Tasmania, and Brazilian state oil company Petroleo Brasileiro SA have agreed to form a joint venture to develop existing oil and gas fields in the Santos basin off Brazil. The agreement also provides for further exploration on the Santos basin block.
Coplex Resources NL, Hobart, Tasmania, and Brazilian state oil company Petroleo Brasileiro SA have agreed to form a joint venture to develop existing oil and gas fields in the Santos basin off Brazil.

The agreement also provides for further exploration on the Santos basin block.

Block BS-3, 170 km off Santa Catarina state in 500 ft of water (see map), is one of the few in Brazil on offer for foreign participation that contains existing proven oil and gas fields in relatively shallow water, says Coplex, the project operator.

Block BS-3's fields

There are three oil fields on Block BS-3: Caravela, which is in production; Coral; and Estrelo do Mar. There is also an oil discovery, Caravela Sul; an existing gas/condensate field, Tubarao; and a partially delineated gas/condensate field, BSS-78, on the block.

Since 1988, Petrobras has shot over 3,000 km of 2D seismic and a substantial amount of 3D seismic, and has drilled exploratory, delineation, and development wells on the block. Four of the discovery wells have been fully delineated and are considered some of the most prolific producers in Brazil, said Coplex, with flow rates gauged at 5,000-10,000 b/d/well.

Three years ago, Petrobras put Caravela into production at a rate of 12,000 b/d of oil from two wells: 3-CRV-1 and 1-BSS-64. Current production is about 8,000 b/d.

Development phases

Block BS-3 development is envisioned as having two phases-an oil phase and a gas phase. The partners have already established the participation interests for the two phases of development, which are not necessarily linked with each other, said Coplex.

Coplex is considering developing Coral and Estrelo do Mar oil fields. Combined reserves in the two fields are estimated at 20-30 million bbl of 40-42° gravity oil.

The reservoirs, which lie at about 15,500 ft, are Albian limestones overlying pre-Cretaceous salt swells and are very similar to those in the Persian Gulf, said Coplex.

"(The reservoirs) are quite different from the clastic reservoirs being developed in over 4,000 ft of water in the Campos basin, which lies offshore Rio de Janeiro some 500 km to the north of the Santos basin," said Coplex.

Coplex intends to drill a well in Coral field and recomplete two existing wells in Estrelo do Mar field. The two wells in Estrelo do Mar will be tied back to the well in Coral field. Once the three wells are completed, Petrobras will move its P14 production facilities from Caravela field to Coral field. Production from the field is expected to reach 12,000 b/d initially.

Petrobras, at the request of Coplex, has reprocessed 3D seismic coverage of BSS-78 field. Coplex, although still in the process of remapping the data, estimates gas reserves at 180-500 bcf and up to 70 million bbl of condensate.

A gas find in this area is viewed by Coplex as having a natural market in Sao Paulo, because the Bolivian-Brazilian gas pipeline provides easy access to that market.

Agreement details, costs

Under the terms of the 7-year agreement, Petrobras will provide its P14 production facilities, storage tanker, standby vessel, helicopter, shore-based facilities, and experienced personnel, receiving a fixed cost per barrel from the time of production start-up.

In turn, Coplex will hire the drilling rig and obtain completion equipment. Development costs for the oil phase of the project are estimated at $2.50/bbl. Operating costs are not expected to exceed $6.80/bbl.

Coplex will receive 93% of production revenues until it recovers the cost of its investment; thereafter, the firm will receive 65% of revenues from the oil phase. The gas phase carries comparable terms.

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