Petrobras Estimates Guara Holds 2.1B BOE

RIO DE JANEIRO (Dow Jones Newswires), Dec. 29, 2011

Brazilian state-controlled oil and gas producer Petroleo Brasileiro SA said Thursday it has declared a large accumulation of oil and gas in the Guara presalt area of Brazil's Santos basin commercially viable.

Petrobras sent a declaration of viability to Brazil's national oil regulator, ANP, the company said in a statement. The company estimates there are recoverable volumes of 2.1 billion barrels of oil equivalent at the giant field, which it proposes should be named Sapinhoa, the indigenous Indian name for a local shellfish.

The new field, part of the BM-S-9 block, is formed by reservoirs of high-quality (30 degrees API) oil, and is a further demonstration of the high potential of Brazil's presalt reserves, which will favor Petrobras' plan to boost production volumes, the company said.

Petrobras is the operator of the BM-S-9 block, where it holds a 45% share, in partnership with BG Group (30%) and Repsol Sinopec Brasil (25%).

Petrobras said it presented the declaration of commercial viability for the area to the ANP a year ahead of the deadline it had been given. The company will present the ANP with a development plan for the area in February, it said.

Petrobras said it started drilling at Guara in 2008 and drilled four wells in the area which confirmed excellent productivity at the site.

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