Petrobras Begins Production in the Peroa Field

Petrobras said that it began gas production in the Peroa Field in the Espirito Santo Basin on February 21, 2006. The first of three wells, 3-ESS-89A, is being gradually brought into production and is expected to reach full daily capacity of more than 1 million cubic meters by next week.

The gas is being processed at the Cacimbas Gas Treatment Unit (UTGC), in the municipal district of Linhares, and will provide additional supplies of 1.3 million cubic meters per day to the state of Espirito Santo.

Once the first 100 kilometers of the Southeast-Northeast Gas Pipeline (Gasoduto Sudeste-Nordeste -Gasene), linking the cities of Cacimbas and Vitoria, become operational, supplies can be doubled. This stretch of pipeline is scheduled to come on stream in the second half of this year.

The Peroa Platform is located off the northern Espirito Santo coast in a water depth of 67 meters and has a processing capacity of 8 million cubic meters per day.

Petrobras has invested R$ 550 million in Phase 1 of the Peroa project, which includes the platform, the submarine gas pipeline and the UTGC. In all, 1,350 direct jobs were created, including construction and operation. Phase II, which is still at the project stage, will increase supplies from the current level of 1.3 million to 8 million cubic meters per day of gas from 2008.