License delay for two platforms reduces Petrobras's 2001 oil production target

Nov. 9, 2001
A government agency's delay in granting environmental licenses for two major platforms will keep Petroleo Brasileiro SA from meeting its 2001 oil production target, said company Pres. Henri Phillippe Reichstul.

By an OGJ Online Correspondent

RIO DE JANEIRO, Nov. 9 -- A government agency's delay in granting environmental licenses for two major platforms will keep Petroleo Brasileiro SA (Petrobras) from meeting its 2001 oil production target, said company Pres. Henri Phillippe Reichstul.

Petrobras' 2001 oil production will likely average 1.36 million b/d instead of the previously projected 1.42 million b/d, he said.

Reichstul blamed Ibama, the federal government environmental protection agency, for the delay of production from Marlim Sul field in Campos basin off Rio de Janeiro state. The agency is "dragging its feet," he said.

The P-40 and P-38 platforms for that field have been awaiting environmental licenses since June. The P-40 has a production capacity of 150,000 b/d of oil and 3 million cu m/day of natural gas, while the P-38 platform has storage capacity of up to 2 million bbl of oil.

Reichstul estimated that lack of an environmental license for the P-40 alone has cost Petrobras $20 million/month.

Petrobras told OGJ Online that present production at Marlim Sul is 50,000 b/d of oil and 3 million cu m/day of natural gas.

Production from the field is expected to peak at 360,000 b/d by 2007.