Peter Howard Wertheim
OGJ correspondent
RIO DE JANEIRO, Oct. 5 -- Brazil's oil reserves are expected to increase by more than 400 million bbl by yearend 2004.
Speaking here Monday at the Rio Oil & Gas Expo, Guilherme Estrella, exploration and production director of Brazil's state-owned oil company Petroleo Brasileiro SA (Petrobras), said, "Domestic crude oil reserves will increase from the present 12.6 billion bbl to 13 billion bbl, despite increasing domestic consumption."
Estrella said Petrobras recently made a significant onshore oil discovery in the Potiguar basin in Rio Grande do Norte state. The block on which the discovery was made is being explored in a joint venture with Partex, a Portuguese oil company.
Preliminary estimates indicate reserves of about 50 million bbl, but new wells will be drilled to further evaluate the reserves. The license for this block was acquired last year during the fifth licensing round organized by the National Petroleum Agency.
"The characteristics of this oil are similar to that discovered in Fazenda Alegre field in the same basin; that is, the oil is excellent for producing lubricants," added Estrella.
Last week Petrobras also found light oil in Recôncavo basin in Bahia state, also onshore, with estimated reserves of 4.5 million bbl of oil.
Increased production
Estrella pointed out that Petrobras is increasing oil production in the northern and northeastern areas of Brazil. Currently 80% of domestic output comes from the Campos basin in the south, off Rio de Janeiro state.
Estrella said 260,000 b/d of oil are being produced in the north and northeast, 10% more than production last year in the same region.
Petrobras intends to beat the production record of 1.64 million b/d of oil in March 2003, aiming for 1.74 million b/d by yearend 2004.
Currently, national oil production averages 1.57 million b/d. The increase this year will be due to, among other factors, the start-up in November of the P-43 platform in the Campos basin.
The P-43 platform is part of a development project for Barracuda and Caratinga fields. In January the P-48 platform also will begin to work in the same area, Estrella said.
