By OGJ editors and an OGJ correspondent
HOUSTON, May 12 -- Petroleo Brasileiro SA (Petrobras), Brazil's state-run oil company has confirmed its largest natural gas discovery to date—on Block BS-400 in the Santos basin on the Brazilian continental shelf. The 1-SPS-35 well indicated reserves of about 70 billion cu m of natural gas or roughly 440 million boe, which increases by about 30% the company's previously recorded 231 billion cu m of proven gas reserves.
"This is the largest natural gas discovery since Petrobras was founded in 1953," a Petrobras source told OGJ Online.
The well 's location off Sao Paulo state is doubly important because of its proximity to the nation's largest consuming market in the states of southeastern Brazil.
Petrobras completed the constrained flow test Apr. 28 for well 1-SPS-35, which lies in 485 m of water 137 km off Sao Paulo state.
The well, which was drilled to 4,956 m TD from the seabed, recorded 100 m of pay that in flow tests produced roughly 700,000 cu m/day of gas and 600 b/d of condensate, indicating a gas production potential of more than 3 million cu m/day in the well.
Abdib: find "formidable"
José Marques, president of the Brazilian Association of Infrastructure and Basic Industry (Abdib) hailed the big natural gas find as "promising, formidable, and strategic."
Marques said the association welcomes the find because the Brazilian government presently is seeking to lower the import price of natural gas it buys from Bolivia, and Brazil will be effectively better-positioned to negotiate the terms of its natural gas import contract, which it signed with the Bolivians in 1996. Under the take or pay contract, Brazil pays for a minimum quota of natural gas even if it does not demand it (OGJ Online Apr.29, 2003).
"The problem of natural gas (usage) in Brazil is its price. The price is in dollars. While prices remain high, there is no way to expand natural gas consumption in the country," Marques said.
Abdib called on the government to encourage natural gas consumption in Brazil. "We need a program to boost consumption of this fuel here," Marques said.
Abdib said that southeastern Brazilian states, including Sao Paulo, consume 11 million cu m/day of natural gas. He said the figure could rise by 12-14 million in the medium term.
Caravela Sul disappoints
Meanwhile, Petrobras reported its delineation well SCS-11, drilled about 5 km north of well SCS-10 to verify the northern extension of Caravela Sul discovery field off Santa Catarina in southern Brazil, reached targeted reservoirs 50 m lower than anticipated and all were water-filled.
The parties will reevaluate reserve estimates for Caravela Sul, which still is viewed as a promising discovery with reserves comparable to those of Coral field (OGJ Online, Feb. 5, 2003).