By OGJ editors
HOUSTON, June 30 -- Devon Energy Corp. said it plans to proceed with development of Block BM-C-8, which lies in the Campos basin off Rio de Janeiro in about 300 ft of water.
Devon made an oil discovery on the block in 2004. Devon is operator of BM-C-8 and holds a 60% working interest. South Korea's SK Corp. holds the remaining interest.
The development project will be named Polvo. To date, the companies have drilled three exploratory wells and two appraisal wells on the block.
Based on two of the structures that have been drilled on the block, the partners have estimated more than 50 million bbl of oil reserves, which Devon believes could increase "significantly" with future exploration activity on the block.
Production facilities for the initial development phase will be sized to handle as much as 50,000 b/d of oil and will include a fixed production and drilling platform connected to a floating production, storage and offloading vessel. Facilities construction is expected to begin in early 2006; first production is projected for second half 2007.
