El Paso Plans First Oil in Camamu Basin late-2008

US energy company El Paso (NYSE: EP) will pump its first oil in Brazil's Camamu basin in late 2008, a company executive told journalists in Rio de Janeiro.

"El Paso is drilling two wells right now in the Pinaúna field to have an idea of how big they are. Our production process will depend on that," El Paso's materials and contracts manager Fernando Quintas told reporters in a breakfast meeting.

The company must still meet demands from federal environmental watchdog Ibama such as spill controls, he said.

El Paso's oil projects in the region will be 10% more expensive because of environmental measures.

The Houston-based company is drilling two wells in the Camamu basin. The oil found in the area is high in paraffin content, which demands a specific heating technology.

El Paso initially targets production of at least 12,000b/d in the wells drilled in Camamu.

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