Tuesday, August 17, 2010

Brazil Finds Largest Land-Based Oil Reserves (PBR); Oil of Top Quality

On top of the giant pre-salt oil reserves, PBR appears to have found the largest land-based reserves in Brazil in the Amazon region. While estimated volumes may be lower than those in the ocean, the quality of the oil is excellent.

Petrobras today has four well drilling rigs operating in the region and at the beginning of next year, the consortium formed by HRT and Petra Energy is expected to start drilling in the first quarter. The prospects for discoveries are encouraging, according to those involved in the effort - HRT alone estimates reserves of 1.5 billion barrels.

Petrobras, in turn, may have found the largest field in the region, or actually in any land area in Brazil. None of the companies talk about the subject, citing impediments caused by the silent period preceding the issuance of shares. Industry sources, however, indicate that the discovery in the block SOL-T-171 has reserves of 180 million barrels. The volume is small compared to the billions of barrels of pre-salt, but it is an oil of excellent quality, with great market value.

Petrobras has already obtained approval in the PA development plans for the SOL-T-171, which must include the drilling of new wells. The concession is near Urucu and it would be producing, according to sources, as a long duration test.

In addition to this discovery, the state announced last week it had found gas in SOL-T-150, which is the route of the pipeline linking the Urucu Manaus, opened in November last year. Petrobras also has two older reserves in the region, not yet developed, forming the pole-Juruá Araracanga, ready to go into production. The latest information from the company indicated that the areas would be opened in 2012.

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