Brazil: Petrobras begins oil exploration in Tupi field in 2009

6 May 2008

Houston, United States, 6 May – Petrobras expects to start oil exploration in the Tupi oil field in 2009 and the Carioca reserve within the next four to five years, the company’s chairman, José Sérgio Gabrielli said in Houston Monday.

The Brazilian oil company will thus start exploration of the Tupi field a year ahead of schedule and hopes to reach a daily output of 20,000 barrels of crude oil, Gabrielli said.

The chairman also said that by the end of 2010 the Tupi field would be working at full capacity, with daily production of 100,000 barrels.

In November, Petrobras announced that that reserve was expected to supply a total of 8 billion barrels of oil.

The investment in the Tupi field and other offshore projects would, according to Gabrielli, lead to a rise of US$112.7 billion in investment over the next five years, as previously outlined in the oil company’s strategic plan.

Gabrielli declined to give a total figure for investment, but noted that “it will increase a lot” especially because, he said, “more rigs will be needed, which are now very expensive.”

Tupi, which is located 250 kilometres off the Brazilian coast, is expected to use a further six oil rigs, daily rental of which costs at least US$600,000.

The Carioca field, located to the southwest of Tupi, is expected to produce 33 billion barrels of oil, Haroldo Lima, the director-general of Brazil’s National Oil Agency said in April. (macauhub)