El Paso Expects Pinauna Output to Begin 4Q08

BNamericas
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US energy company El Paso (NYSE: EP) expects oil production at the Pinauna offshore field in Brazil to begin in the fourth quarter of 2008, El Paso E&P president Brent Smolik said during the company's annual analyst meeting.

This year El Paso will focus on project procurement and construction, Smolik said in a webcast.

Output at Pinauna is expected to be 15,000b/d through 2009, he said.

Pinauna is in the Camamu-Almada basin some 12km offshore Bahia state and has reserves of 33M-35Mb paraffin oil, the company said previously.

El Paso's current Brazilian output comes from the Potiguar basin, while exploration work is underway in the Espirito Santo basin.

E&P CAPEX

The company plans to spend US$1.7bn on E&P this year, of which US$215mn will go to international operations "largely" in Brazil, Smolik said. El Paso's total 2007 capex is US$2.7bn.

El Paso will report 4Q06 earnings February 27.

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