Hydro, Anadarko to invest $2.5 billion in Brazil

Norway's Norsk Hydro ASA and Anadarko Petroleum Corp. reported they will invest $2.5 billion to 2010 to develop Peregrino heavy crude oil field on BM-C-7 block in the Campos basin off Brazil.

Apr 2nd, 2007

Peter Howard Wertheim
OGJ Correspondent

RIO DE JANEIRO, Apr. 2 -- Norway's Norsk Hydro ASA and Anadarko Petroleum Corp. reported they will invest $2.5 billion to 2010 to develop Peregrino heavy crude oil field on BM-C-7 block in the Campos basin off Brazil. Hydro's joint venture with Anadarko is 50-50.

The partners will lease a floating production, storage, and offloading vessel from Norway's AP Møller-Maersk. They will also lease two drilling platforms. Peregrino field, a shallow-water field with reserves pegged at 300-600 million bbl, is Hydro's first oil and gas commitment in Brazil.

Hydro has submitted development plans for the field to Brazil's National Petroleum and Biofuels Agency. Plans include the drilling of 30 horizontal wells and seven water-injection wells. The aim is to produce 100,000 b/d of oil by 2010.

The company plans to expand in Brazil and will invest in three Santos basin exploration blocks, in which it acquired working interest during the eighth ANP licensing round in November 2006.

Norsk Hydro is operator in one block and holds non-operating interest in the other two blocks, which are operated by Spain's Repsol-YPF SA and Brazil's state-owned Petroleo Brasileiro SA. In addition, Norsk Hydro will continue to look for farm-in opportunities.

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