Devon Signs Tax Incentive Agreements for Polvo Field

US independent oil company Devon Energy (NYSE: DVN) has signed tax incentives agreements with Brazil's Rio de Janeiro state government to develop the Campos basin's offshore Polvo field, the state government said in a statement.

The tax exemption covers equipment purchases and hiring of services from companies in the state.

Suppliers include local companies Ebse and Enaval, which will supply manifolds. Alfanave will provide support services.

The US$300mn development project could wrap up second quarter next year. Polvo could produce 50,000 barrels of oil a day.

Devon Energy announced commercial feasibility of Polvo in July 2005 in the BM-C-8 block located 100km from shore at water depths of 92-259 meters. Polvo is estimated to hold reserves of some 50 million barrels of heavy crude at 18-22 degrees API.

Devon will use a fixed platform linked to 11 oil production and four water injection wells. Most of the reserves will be exploited by 2012, according to the field's development plan presented to national hydrocarbons regulator ANP.

The US company holds 60% and operates the BM-C-8 block. South Korean oil company SK Corp has a 40% interest in the field, which was awarded to the partners in 2000, where oil discoveries were registered from 2001-05.

Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports. Click here for a Free two week trial to our Latin America Oil & Gas information service.

For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Logistics Coordinator & Optimization Analyst
Expertise: Logistics Management
Location: Billings, MT
Associate Category Manager or Category Manager Job
Expertise: Logistics Management|Purchasing|Supply Chain Management
Location: Denver, CO
Contracts Advisor
Expertise: Budget / Cost Control|Contracts Engineer|Supply Chain Management
Location: San Ramon, CA
search for more jobs

Brent Crude Oil : $51.38/BBL 2.44%
Light Crude Oil : $50.43/BBL 2.26%
Natural Gas : $3.14/MMBtu 0.94%
Updated in last 24 hours