Offshore staff
(Brazil)- Brazil's federal energy company Petrobras announced plans to increase gas production by 24 MMcm/d in 2008 by investing in well-known prolific areas off the coast of Espírito Santo state, where it continues to find oil and gas.
This follows a May 18th announcement in which the company stated that it wants to produce 16.5 MMcm/d in Espírito Santo as part of efforts to increase fuel supplies in the southeastern region of the coutnry.
Production would come mainly from the development of recent finds in the 1-ESS-160, 1-ESS-164 and 1-ESS-130 fields, which are still under appraisal and have not yet been declared commercially feasible, Petrobras said.
Wells 1-ESS-164 and 1-ESS-160 are located in the deepwater BES-100 block in the Espírito Santo basin, in which Petrobras has 100% interest and where the prolific Golfinho field is located. According to Deloitte Petroleum Services analyst Mauro Andrade, these two fields have combined estimated recoverable reserves of 280 MMbbl.
The 1-ESS-130 field is located in the ultra-deep waters of the BC-60 block, also off the Espírito Santos basin, but geologically located in the Campos basin. Petrobras owns a 100% interest in this block as well, where it produces heavy crude out of the offshore region known as Whale Park.
Petrobras expects to produce light crude there as well, since in 2003 it registered light crude finds. The company also continues to find oil in the block and made a registered find there as recently as March, according to data from hydrocarbons regulator ANP.
The race is now on to guarantee production by the end of 2008, particularly since oil companies are facing increased demand for services and equipment.
Andrade said "2008 is tomorrow in oil industry time. I think Petrobras will do its best to meet the deadline, but will likely have to delay the projects [after] taking into account the scarcity of drilling and pipeline-laying ships."
The result of speeding up plans could also result in higher development costs since equipment lease costs have surged in recent years.
5/30/2006
