Thursday, October 28, 2010

Brazil To Announce Its Largest Ever Light Oil Discovery To Date: 12B Barrels

Brazil will announce on Friday its largest oil discovery ever. The new Libra field is expected to be even larger than Tupi, in the Campos basin, and will likely have around 12 billion barrels. This is a very conservative estimate, which assumes that only 13% of the oil can be recovered, with total of 60B barrels.

The announcement will be made by the National Oil Agency. The first target was hit earlier this week, at a depth of 6,900m. Although he well is being drilled by PBR, Petrobras, PBR (click for alerts and TA), it is owned by the country.

12B barrels = about $1T at current prices.
60B barrels = $4.8T

The timing of the announcementt is of course highly suspect, as Brazil heads for runoff Presidential elections this Sunday.

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