"This is a similar project to the one we developed in Lagoa do Paulo last year, with oil of very good quality," he said. Oil found in the region is of 35 degrees API.
Petrorecôncavo had declared commerciality in the neighboring Lagoa do Paulo field in April last year. The BT-REC-10 is made up of several mature fields that federal energy company Petrobras (NYSE: PBR) handed back to national hydrocarbons industry regulator ANP in recent years and which were tendered out in the fourth bidding round in 2002.
The Recôncavo basin is Brazil's oldest production area, where oil was first found in the country in the 1930s. The basin is full of old fields where production has declined and which Petrobras has handed over to the regulator.
ANP currently has a portfolio of 54 fields that were handed back that it plans to put out to tender with rules aimed at attracting small independent companies.
Petrorecôncavo plans to drill five wells in Lagoa do Paulo Norte at a total cost of 1.5mn reais (US$550,000). The wells will produce about 100 barrels of oil a day, da Cunha said.
Although Petrorecôncavo has service contracts with Petrobras to operate some mature wells, it is expanding its own exploration portfolio. The company currently has exploration concessions in two other blocks in the Recôncavo basin awarded in 2002, the REC-T-8 and REC-T-9, and two more awarded in the sixth hydrocarbon licensing round in 2004, the REC-T-151 and REC-T-71, da Cunha said.
"We are still carrying out geological studies in the block," he said. Petrorecôncavo had pledged to invest 60,000 reais in the blocks it obtained in 2004. Additionally, the company is considering bidding alone for ANP's seventh hydrocarbon exploratory round scheduled for October.
"We have to see the rules since this is the first time that ANP is awarding licensing for mature fields separately," da Cunha said.
Petrorecôncavo is interested in the seven areas in the Recôncavo basin that ANP plans to include in the tender, he said. Final details of the blocks will be announced at the end of the month, federal government authorities have said.
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