New well pegs Tupi area reserves at 5-8 billion boe

Petroleo Brazileiro SA (Petrobras) reported that a new well drilled in the Tupi area of the Santos basin off Brazil further confirms reserves estimates of 5-8 billion boe of light oil and natural gas.

Nov 13th, 2009

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Nov. 13 -- Petroleo Brazileiro SA (Petrobras) reported that a new well drilled in the Tupi area of the Santos basin off Brazil further confirms reserves estimates of 5-8 billion boe of light oil and natural gas.

The Brazilian state-run firm said the 3-BRSA-755A-RJS well, which is its fourth in the area, was drilled 265 km off Rio de Janeiro in 2,115 m of water. The well is 18 km northeast of the 1-RJS-628 discovery well, known as Tupi.

A 250-m layer of light oil-bearing reservoirs was drilled and sampled via cable tests at depths starting at 4,900 m, Petrobras said, adding that formation tests aimed to assess the productivity of the reservoirs are scheduled to begin in the coming weeks.

Last week, Petrobras Chief Executive Officer Jose Sergio Gabrielli, without providing any explanation, told a conference that Brazil’s presalt fields hold a higher proportion of natural gas than oil.

Gabrielli also said that the company should have an output of 1.8 million b/d from the presalt fields as of 2020, from the current 30,000 b/d.

Petrobras produces 2.5 million b/d from all of the areas it operates, Gabrielli said, adding that the extra production from the presalt layer would need investment of $28.9 billion to 2013 and $111 billion to 2020.

Meanwhile, analyst IHS Global Insight said recent discoveries in the Santo basin have prompted expectations that this cluster of fields will convert Brazil into a leading oil producer and will also generate new revenue for investment in social projects.

“The IEA's World Energy Outlook out this week expects Brazil to become the world's sixth-largest oil producer and the largest producer in Latin America by 2015,” IHS Global Insight said.

Operator Petrobras holds a 65% stake in the BM-S-11 development, while BG Group holds 25% and Galp Energia, 10%.

Contact Eric Watkins at hippalus@yahoo.com.

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