Offshore staff

RIO DE JANEIRO, Brazil- Norwegian company EMGS has obtained the first license to perform electromagnetic studies in Brazil for federal energy company Petrobras and US oil company Devon Energy.

Brazil's federal environmental protection agency Ibama awarded the license on July 11 for the studies of the northeastern basins of Barreirinhas and Para-Maranhao.

Devon has interests in one block in the Barreirinhas basin (BM-BAR3), while Petrobras has interests in seven exploration blocks in Barreirinhas and four in the Para-Maranhao basin.

"This is a new technology that will change the way seismic studies are done because it reduces the risk significantly," EMGS Brazilian representative Marcio Mello said.

"These companies have hired EMGS to carry out the studies in deepwater blocks in these frontier basins, which have known potential," Mello said.

Mello added that initial seismic studies had already been performed in these regions, identifying geological structures. The electromagnetic survey will allow the companies to identify whether there are gas or oil reserves in these structures.

"Without these technologies, the companies would have to drill wells at a cost of some $40 million each to see whether there is oil in the structures," he said. "Now they will only drill if the surveys show there is oil."

Although this is the first official license, the technology had already been used in Brazil by Anglo-Dutch oil company Shell, Mello said, without giving details. "We are in talks with Shell for other projects and with lots of other companies in Brazil."

The studies could start in August or September, and the license expires at the end of the year.

07/24/2006