Petrobras inks Trinidad exploration deal with Hydro

Petrobras Trinidad Ltd. Wednesday inked a farmout agreement with Norsk Hydro AS for exploration Block 27 off Trinidad and Tobago. Under the deal, Hydro will acquire half of Brazilian state-owned Petrobras' 38% stake in the deepwater acreage, where water depths range from 700-1200 m. The first of two exploration wells on the block, awarded in 1998, is scheduled to be spudded in August/September.


Petrobras Trinidad Ltd. Wednesday inked a farmout agreement with Norsk Hydro AS for exploration Block 27 off Trinidad and Tobago. Under the deal, Hydro will acquire half of Brazilian state-owned Petrobras' 38% stake in the deepwater acreage, where water depths range from 700-1200 m.

The first of two exploration wells on the block, awarded in 1998, is scheduled to be spudded in August/September.

A 3D seismic has been acquired and two exploration wells are planned. The block covers 1,220 sq km, approximately the size of two North Sea blocks.

The farm-in is subject to approval by the Trinidad and Tobago government and the block's other partners, BP (57%), Petrobras (19%), and Trinidad-Tobago national oil and gas company Petrotrin (5%).

Trinidad-Tobago produced 135,000 b/d oil and 10.9 billion cu. m of natural gas in 1999.

Meanwhile, Hydro's development plans for its Grane development on Block 25/11 in the Norwegian North Sea moved ahead with the award Thursday of two orders for manufacturing and delivery of steel pipe for the 217-km, 28-in. oil export pipeline that will link the field platform to the Sture terminal.

Due to "limited capacity" in the steel market, Hydro said it has had to divide the order between Europipe GMBH and Mitsui & Co. Norway AS. The two contracts, individually valued at some $30 million, are for 50,000 tonnes of steel each.

Hydro said the line pipe is scheduled for delivery to a coating yard in either Scotland or Norway between September and December.

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