Pre-Salt to Make Brazil's Reserves World's 9th Biggest



MADRID (Dow Jones Newswires), November 24, 2008

About $400 billion will be needed to develop Brazil's promising pre-salt oil area over a 10-year period, according to a preliminary estimate, Haroldo Lima, the president of Brazil's National Petroleum Agency, or ANP, said Monday.

The estimate is based on calculations by the ANP, Brazil's state-run oil firm Petroleo Brasileiro SA, or Petrobras, and Brazil's government, Lima said. He spoke to Dow Jones Newswires ahead of the Brazil-Spain Investment Forum in Madrid.

Oil found in the area lies usually at water depths of 2,000 meters or more, and then several thousand meters further under layers of salt, rocks and sand, which makes production expensive and challenging.

According to preliminary estimates, the pre-salt could contain between 50 billion and 70 billion barrels of oil, Lima said.

Due to recent discoveries, Brazil's proven oil reserves likely jumped to about 14 billion barrels in 2008 from 12.6 billion barrels in 2007, Lima also said, adding that the 2008 figure still isn't consolidated. The ANP usually gives its annual reserve estimates in January.

Spanish oil company Repsol-YPF, Portugal's Galp Energia SPGS SA, BG Group, ExxonMobil Corp., and Royal Dutch Shell PLC., have significant stakes in Brazil's pre-salt area.

Copyright (c) 2008 Dow Jones & Company, Inc.


RELATED COMPANIES
Company: Exxon Mobil Corporation more info
Operates 15 Offshore Rigs
 - ExxonMobil's Reserves Jump 19% On Growth In US Shale, UAE (Feb 09)
 - ExxonMobil Hits Baytown Ethane Cracker Milestone (Feb 07)
 - ExxonMobil Stock Rout Deepens as Profit Flub Meets S&P 500 Plunge (Feb 05)
Company: Petrobras more info
Operates 33 Offshore Rigs
Manages 10 Offshore Rigs
 - Petrobras to Sell Pasadena, Texas, Refinery (Feb 06)
 - Exxon, Petrobras Form Alliance To Develop Oil, Gas Projects (Dec 14)
 - Natural Gas In Petrobras Pipelines Up About 23% In 2017 (Dec 05)
Company: Shell more info
Operates 30 Offshore Rigs
 - Oil's Heavy Hitters Line Up to Dive Into Mexico's Deep Waters (Jan 26)
 - UK Firm Intertek Says Employee Involved in Shell Oil Theft Case (Jan 17)
 - Shell Looks Beyond Road Fuels to Secure Future of Refining (Nov 06)
Company: BG Group more info
 - Shell Mulls LNG-Hub Network as Use by Ships and Trucks Expands (Jul 11)
 - Tanzania Laws Would Allow Govt to Tear Up Mining, Energy Deals (Jun 29)
 - Despite Cuts, Big Oil to Expand Production into the 2020s (Sep 05)
Company: Repsol more info
 - Oil's Heavy Hitters Line Up to Dive Into Mexico's Deep Waters (Jan 26)
 - Exxon Mobil Bets on Brazil, Buys 10 Oil Blocks in Auction (Sep 28)
 - Repsol Says Drilling Suspended On Vietnam Oil Block Disputed By China (Aug 02)
Company: ANP more info
 - Brazil Regulator Approves Bidders For Oil Auction In March (Feb 21)
 - Brazil Regulator Allows Petrobras To Source Libra Rig Hull From Abroad (Oct 04)
 - Brazil's Prized Santos Basin Receives Single Bid In Oil Auction (Sep 27)
Company: Galp Energia more info
 - Galp Cuts Investment Plan, Sees Higher EBITDA Growth (Feb 21)
 - Eni Board Authorizes Investment for First Phase of Coral Discovery (Nov 18)
 - European Oil, Gas Companies Looking to Cut Costs Further (Oct 31)