Offshore staff

HOUSTON - US independent oil company Newfield Exploration will wind down operations in Brazil by year-end, according to a company spokesperson.

"We are not a large company and decided on the redeployment of assets," the spokesperson said. The company will now focus more attention on its international operations in Malaysia and China.

Newfield's investments in Brazil started in 2002, when it paid some $500 million in entrance fees to explore the BM-ES-20 block in Espírito Santo state. The company added to this in 2003 with the acquisition of exploration rights in two offshore blocks in the Santos basin.

Newfield based its decision to end Brazilian operations on an unsuccessful attempt to obtain an environmental license for seismic and drilling operations at BM-ES-20.

Last year, federal environmental protection agency Ibama deemed the block's exploration activities environmentally unsafe, saying the block was too close to a marine wildlife reserve in Bahia state.

The BM-ES-20 concession was later cancelled; the government is unlikely to offer concessions in areas close to the park again.

The spokesperson did not say what would be done with the two Santos basin blocks.

After Newfield departs, there will still be 55 companies listed by national hydrocarbons regulator ANP as operating in Brazil.

8/14/2006