Pre-Salt to Make Brazil's Reserves World's 9th Biggest


Fields and Basins of Brazil
(Click to Enlarge)

MADRID (Dow Jones Newswires), November 24, 2008

About $400 billion will be needed to develop Brazil's promising pre-salt oil area over a 10-year period, according to a preliminary estimate, Haroldo Lima, the president of Brazil's National Petroleum Agency, or ANP, said Monday.

The estimate is based on calculations by the ANP, Brazil's state-run oil firm Petroleo Brasileiro SA, or Petrobras, and Brazil's government, Lima said. He spoke to Dow Jones Newswires ahead of the Brazil-Spain Investment Forum in Madrid.

Oil found in the area lies usually at water depths of 2,000 meters or more, and then several thousand meters further under layers of salt, rocks and sand, which makes production expensive and challenging.

According to preliminary estimates, the pre-salt could contain between 50 billion and 70 billion barrels of oil, Lima said.

Due to recent discoveries, Brazil's proven oil reserves likely jumped to about 14 billion barrels in 2008 from 12.6 billion barrels in 2007, Lima also said, adding that the 2008 figure still isn't consolidated. The ANP usually gives its annual reserve estimates in January.

Spanish oil company Repsol-YPF, Portugal's Galp Energia SPGS SA, BG Group, ExxonMobil Corp., and Royal Dutch Shell PLC., have significant stakes in Brazil's pre-salt area.

Copyright (c) 2008 Dow Jones & Company, Inc.

Related Companies
 Company: Exxon Mobil Corporationmore info


 - Nigeria To Mediate In Dispute Between Exxon And Labor Unions (May 24)
 - Shell Shareholders Reject Emissions Target Proposal (May 23)
 - ExxonMobil, Total Discuss Offshore Drilling Opportunities In Greece (May 19)
 Company: Petrobrasmore info


 - Petrobras Sees Room For More Efficient Payroll, CAPEX (May 12)
 - Petrobras Eyes Adding Texas, African Assets to Asset Sale Plan (May 10)
 - Exxon, Petrobras Said to Hold Talks on Wide-Ranging Partnership (May 9)
 Company: Shellmore info


 - No New Demand, More Supply Leaves Spot Price Languishing (May 26)
 - Woodside Sees Output Growing 15 Pct Over Next Three Years (May 23)
 - Shell Shareholders Reject Emissions Target Proposal (May 23)
 Company: BG Groupmore info
 - Despite Cuts, Big Oil to Expand Production into the 2020s (Sep 5)
 - Sound Energy Appoints Ex-BG Exploration Lead (Aug 24)
 - Shell Misses Expectations As Earnings Plunge On Oil, BG Costs (Jul 28)
 Company: Repsol more info
 - Repsol Sinopec Flows First Oil from North Sea Shaw Field (May 9)
 - Spain's Repsol Aims To Cut Debt By A Further 16% In 2017 (Feb 23)
 - Poll: US, Foreign Oil Companies to Prosper in Trump's USA (Nov 10)
 Company: ANPmore info
 - Brazil November Oil, Gas Output Lowest In A Year After Strike (Jan 4)
 - ANP: Brazil Produced Record 2.5 MMbpd Of Oil In August (Oct 1)
 - ANP: Brazil Oil And Gas Production Rises 13% In November (Jan 6)
 Company: Galp Energiamore info
 - Galp Cuts Investment Plan, Sees Higher EBITDA Growth (Feb 21)
 - Eni Board Authorizes Investment for First Phase of Coral Discovery (Nov 18)
 - European Oil, Gas Companies Looking to Cut Costs Further (Oct 31)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Dispatcher Level 1 and Level 2
Expertise: Logistics Management
Location: Denton
 
Senior Land Professional Job
Expertise: Landman|Lease Analyst
Location: Oklahoma City, OK
 
Surface Land Professional Job
Expertise: Landman|Lease Analyst
Location: San Antonio, TX
 
search for more jobs

Brent Crude Oil : $51.46/BBL 4.63%
Light Crude Oil : $48.9/BBL 4.78%
Natural Gas : $3.18/MMBtu 0.90%
Updated in last 24 hours