Petrobras to Drill Devt Wells at Deepwater Cascade, Chinook Fields in '09

Petrobras announced Wednesday that the company will drill two more development wells this year in the Cascade and Chinook fields, located 180 miles south of Louisiana in the Walker Ridge area of the Gulf of Mexico, Dow Jones reports.

Both deepwater fields are operated by Petrobras, which owns 50% of Cascade and 66.67% of Chinook. The remaining 50% of Cascade is owned by Devon Energy Corporation, while Total E&P owns the remaining 33.33% of Chinook. The Cascade and Chinook field development involves the first use of an FPSO (Floating Production Storage and Offloading) system in the Gulf of Mexico.

According to Petrobras' Project Manager, Cesar Palagi, the two planned development wells, in addition to another well currently being drilled in Cascade, will commence production in mid-2010, the report stated.

Palagi also reported that Petrobras does not intend to trim its international investment in favor of exploiting deepwater resources offshore Brazil, Dow Jones said.

"Petrobras has a very strong international investment plan, about $15 billion in a five-year period," Palagi said. "The Gulf of Mexico is the area where Petrobras is going to invest the most internationally."