"This will be the total investment," he said. "This investment will be divided in several phases as we have not drilled all the wells in Polvo yet."
Marroquim did not say whether the company would sell the oil from Polvo to Brazil's federal energy company Petrobras (NYSE: PBR) or other countries.
"Devon does not have refineries so will sell the oil from Polvo to whoever wants to buy it," the executive said.
Polvo is expected to peak by the end of 2008 at roughly 50,000b/d. Devon holds 60% of the field and SK Corporation of Korea the balance.
ROUNDS 8, 9
Devon Energy is interested in bidding for blocks in Brazil's eighth and ninth hydrocarbons exploration licensing rounds, he said.
"As for round eight, we're more interested in the blocks as we have more information on them. About round nine, all I can say that the blocks available were just disclosed by the government and we need to study these areas further. There are lots of different blocks with different characteristics," Marroquim said.
There were no restrictions on the company in entering in new blocks in Brazil as an operator.
"This would not be a new situation for us as we are operator in six blocks in Brazil," Marroquim said.
Marroquim discounted claims Brazil's oil and gas services industry risks excess demand. "We have to keep in mind that companies which will be awarded blocks will need some years to prospect the areas. This will take five years. If they indeed find oil in these areas, then they will go to the development stage. The industry will have plenty of time to adapt," he said.
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