BRAZIL: Brazil oil production bounces back as deepwater search broadens
George Hawrylyshyn
Brazil's domestic production of oil increased again in the month of April, reaching 1,311,000 b/d, up 0.6% over March, which was 1,303,000 b/d. According to Petrobras, the ongoing production growth demonstrates the producer's success in adopting measures to minimize the impact of the loss of the P-36 semisubmersible production platform in March in terms of oil production.
The P-36 unit was then producing around 80,000 b/d. Recovery came about as result of the startup of production from four new oil wells in the Campos Basin (RJ). Three of these are in the Marlim field, while the fourth is located in Marlim Sul. The wells each produce an average of 13,000 b/d of oil. With the overseas production of 45,000 b/d through Petrobras Internacional-Braspetro (Petrobras' international subsidiary), total production reached 1,355,000 b/d in April.
Petrobras and the new producers licensed for blocks offshore Brazil are spreading their search for deepwater oil from Campos Basin to both the northernmost and southernmost offshore sedimentary basins off the Brazilian coastline.
Indicative of the importance that Petrobras and the new operators attach to the Campos Basin specifically and to deep waters in general, is the fact that of the total of 34 offshore wells now being drilled off Brazil, 13 are in Campos (followed by six in nearby Santos and three in nearby Espirito Santo). Of the overall total of 34 wells, an impressive 21 are being drilled in deepwater and ultra-deepwater - from 600 meters to 2,225 meters.
Other areas
Although the greatest concentration of exploratory activity continues to be concentrated in the Campos area, southern neighbor Santos Basin, and northern neighbor Espirito Santo, both Petrobras and some of the newcomers, attracted by the prospects of giant field discoveries in other parts of Brazil, are venturing into frontier regions and making heavy investments in the expectation of big returns.
Since the new opening of licensing to outside operators, Brazil's frontier exploration activities have increased, and some companies are betting that high risk can also result in high profits. In this category are such companies as British Petroleum, Exxon, El Paso, and Petrobras, all of whom are exploring in blocks in such frontier basins as Pelotas, Foz do Amazonas (Mouth of the Amazon), both offshore, and the huge Parana Basin onshore. The only time in the past these regions attracted so much attention was in the risk contract period - 1974 to 1988 - when selected multinational operators were allowed to drill.
Active basins
Currently, in those three basins, six areas are being explored. Three are in the Foz do Amazonas: BFZ-1, with Exxon, and BFZ-2 and BM-FZA-1, with British Petroleum.
Two are in the Parana Basin: BPAR-10 and BT-PAR-4, both operated by El Paso. And one is in Pelotas, Brazil's southernmost basin: BP-1, operated by Exxon until a short time ago, but now managed by Petrobras.
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Volume 61 Issue 7
July 2001
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