Petrobras to Begin First Phase of Tupi

Petrobras has confirmed that that company is starting the first phase of field development on Tupi -- long-term tests on the massive oil and gas field.

The largest hydrocarbon find in the world since the Kazakh Kashagan discovery in 2000, Petrobras’ discovery off the coast of Brazil at Tupi holds estimated recoverable reserves of 5 to 8 billion barrels of oil equivalent. Discovered in July 2006, Tupi is Brazil’s largest discovery to date, located in block BM-S-11 in the Santos Basin, 155 miles (250 kilometers) from the southern coast of Rio de Janeiro.
Petrobras is executing two phases of development for Tupi. Expected to be launched in March 2009, the first phase of development will conduct long-duration tests of the area. The Cidade de Sao Vicente FPSO, contracted from BW Offshore, will collect information about the field to be used in creating long-term production solutions for Tupi and other Pre-Salt developments.
The second phase of development calls for a pilot FPSO to produce from the field. Petrobras contracted MODEC to convert the oil tanker M/V Sunrise IV into the FPSO Cidade de Angra dos Reis for operation on the field by December 2010.

Because field development is still in its infancy, Tupi’s peak production is still a question. Some reports predict that the field will reach peak production of 200,000 boepd in 10 to 15 years. Other reports anticipate the field reaching peak within seven years, while others expect a peak by 2022.

Brazilian-run Petrobras serves as the operator, holding a 65% interest in the field. British BG Group holds 25%, and Portugal's Galp Energia holds the remaining 10%.