MercoPress. South Atlantic News Agency

Petrobras exploration priorities: Gulf of Mexico and Argentina

Brazil' government managed oil corporation Petrobras announced international investments totaling 15 billion US dollars in the 2008/2012 period, most of which in exploration and production in the Gulf of Mexico, Argentina and Western Africa.

Petrobras' International Area director, Nestor Cerveró said that overseas projects in these areas would absorb 70% of those funds, equivalent to 10 billion US dollars. He added that Petrobras international oil, LNG, and natural gas production goals for 2012 are 436.000 barrels of oil equivalent per day, and 698.000 barrels per day by 2015. Refining, Transportation, Marketing, & Petrochemicals, or (RTMP) will be allotted 3.7 billion US dollars (25%) while other business segments involved the remaining 5%. Regarding downstream (Refining, Transportation, marketing), the strategy is to increase the integrated performance in refining, marketing, logistics and distribution, focusing on the Atlantic Basin. Petrobras will seek to boost its presence in Petrochemicals and Gas & Energy in South America. In the bio-fuel segment, meanwhile, the company hopes to become a global player, leading bio-diesel production and increasing participation in the global ethanol business. Unites States in the Gulf of Mexico will attract most investments, 4.9 billion US dollars followed by Argentina, Nigeria and Angola. Cerveró reiterated that Petrobras overall investment in the next five years will reach 112 billion US dollars including all areas. "We're planning to be among the world's top five energy corporations by 2015". Production goal for 2012 is 3.058 million bpd, 50% above 2006 production. By 2015 the volume should reach 3.455 million bpd. In related news Petrobras announced that the Xerelete oil field to the south of the Campos Basin, offshore Rio do Janeiro has become commercially viable, according to Brazil's National Petroleum Agency. The area involved is operated by Petrobras in partnership with Total and Devon. Preliminary geological studies indicate the accumulated Xerelete oil field area may extend over 26 square kilometers km², holding an estimated in-place volume of some 1.4 billion barrels of oil equivalent. Additional studies are being carried out to define this new field's production development project. The 1-EPB-1-RJS well at the Xerelete field was drilled at a water depth of 2.483 meters, having reached sandy 17.5° API oil-bearing reservoirs at a depth of 3,478 meters. The accumulation's productivity was confirmed via the delimitation well 3-RJS-648 (3-BRSA-481-RJS), where flows of up to 2500 barrels of oil per day were registered. A new world water depth record (2,460 m) was set at this well with the use of the Submerged Submarine Centrifugal Pump.