Petrobras to Pump US$994mn Into Espírito Santo in 2005

Brazil's federal energy company Petrobras (NYSE: PBR) plans to invest 2.7bn reais (US$994mn) in the southeastern state of Espírito Santo to develop oil and gas production projects, a company spokesperson told BNamericas, confirming local press reports.

The projects involve the development of onshore and offshore fields in the Espírito Santo and Campos basins, the official said, adding the amount that will be invested this year represents about 40% of the total cost of the main four projects there. In 2004, the company spent 1.8bn reais in Espírito Santo state, newspaper Gazeta de Vitória reported.

Petrobras plans to wrap up in June the refurbishment of the P-34 floating, production, storage and offloading (FPSO) vessel which will be used to produce 60,000 barrels of oil a day (b/d) at the Jubarte field in the Campos basin, off the southern coast of Espírito Santo state.

When the first phase of this project was started a few years ago it was budgeted at US$230mn. The second phase involves the construction of the P-57 platform that is scheduled to come on line in 2010, the spokesperson said.

As for the Espírito Santo basin, off the northern coast of the state, Petrobras will conclude the development of the Peroá field some 57km offshore. In June, the PPR-1 fixed, uninhabited platform will start production and the onshore gas treatment plant at Canoga will also begin operations, the spokesperson said.

The whole Peroá-Cangoa project was started in 2003 and is budgeted at US$278mn, which includes the underwater links to the platform.

Still in the Espírito Santo basin, Petrobras plans to contract the FPSO Capixaba to start producing oil on the region's most prominent light crude and natural gas field, Golfinho, by May 2006 and expand the onshore Cacimbas gas treatment unit. The project is expected to cost US$960mn, the spokesperson said.

Petrobras also plans to contract a second FPSO for Golfinho to start operations in May 2007.

Finally, the company expects to start operations by mid-year of the northern Capixaba terminal system which includes a pipeline link that will take heated ultra-heavy crude from the inland Fazenda Alegre field to an offshore buoy terminal. From there ships can load the fuel to take it to Petrobras' Lubinor lubricant plant in Ceará state, in the northeast of the country.

Petrobras currently produces some 40,000b/d in Espírito Santo state, of which 50% comes from the Jubarte field. In total the company produces around 2 million barrels of oil equivalent a day, or 1.5 million b/d of oil.

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