Offshore staff

US, GoM -- Petrobras plans to deploy the first FPSO in the US Gulf of Mexico to develop the Cascade and Chinook fields located in the Walker Ridge area in water depths ranging from 7,000-9,000 ft.

Petróleo Brasileiro SA subsidiary, Petrobras America Inc. based in Houston, will operate both fields with 50% and up to 71.67% working interest, respectively. Other participants in the fields include Devon Energy and Total E&P USA Inc.

Petrobras recently acquired an additional 25% working interest in Cascade and 26.67% interest in Chinook from BHP Billiton, and an additional 15% in Chinook from Hess.

The operator says it is fasttracking development of the fields through a phased approach to achieve first oil by late 2009. Initial production will flow through two subsea wells on Cascade and one subsea well on Chinook to a moored FPSO.

The company has secured one rig and is in the process of contracting a second, to conduct development drilling in the area.

According to Cascade partner, Devon, who recently increased its working interest in the field from 25% to 50%, the MMS issued a Suspension of Production (SOP) on July 31, 2006 for permission to begin commercial development of the discovery. The "Cascade Unit Agreement" area covers 23,000 acres in Walker Ridge blocks 205, 206, 249, and 250.

Meanwhile, Petrobras is developing its Cottonwood gas field, located in Garden Banks block 244 in approximately 2,297 ft of water, as a subsea tieback to an existing facility. First production is expected in early 2007.

08/15/06