Galp See Brazil's Tupi Profitable at Current Oil Prices
RIO DE JANEIRO (Dow Jones Newswires), Mar. 5, 2009
Portugal's Galp Energia believes production at the Tupi subsalt oil field in Brazil is viable despite the slide in international oil prices, Galp's chief executive said Wednesday.
"Production at Tupi is competitive, even at the actual level of oil prices," Galp CEO Manuel Ferreira de Oliveira was quoted by the Estado news agency as saying after his company released its fourth-quarter earnings.
Production at the field was expected to start by end-2010, Oliveira said.
Galp holds a 10% stake in the BM-S-11 block in Brazil's offshore Santos Basin. Brazilian state-run energy giant Petrobras is the lead operator of the block with a 65% stake, while BG Group holds the remaining 25%.
In November 2007, Petrobras estimated recoverable reserves at Tupi at between 5 billion and 8 billion barrels of oil equivalent, or BOE.
According to Oliveira, Galp plans to invest $3 billion over the next few years to develop its Brazilian prospects.
"The projects in Brazil are going to gain strength this year and the next," Oliveira added.
In addition, Oliveira said that output at the Iara field was expected to start in 2014. Iara is contained in a separate portion of the same BM-S-11 block, with estimated recoverable reserves of between 3 billion and 4 billion BOE.
"I can't confirm that with a lot of conviction because the projects are still in an evaluation phase," Oliveira said. "But as soon as the evaluations are completed, the projects will certainly be approved."
Copyright (c) 2009 Dow Jones & Company, Inc.
Operates 35 Offshore Rigs
Manages 12 Offshore Rigs
- Brazil Regulator Allows Petrobras To Source Libra Rig Hull From Abroad (Oct 04)
- Exxon's Big Bet on Brazil Oil Could Signal Major Pre-salt Role (Sep 29)
- Exxon Mobil Bets on Brazil, Buys 10 Oil Blocks in Auction (Sep 28)
Company: BG Group more info
- Shell Mulls LNG-Hub Network as Use by Ships and Trucks Expands (Jul 11)
- Tanzania Laws Would Allow Govt to Tear Up Mining, Energy Deals (Jun 29)
- Despite Cuts, Big Oil to Expand Production into the 2020s (Sep 05)
Company: Galp Energia more 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)