El Paso Completing Second Santos Well Offshore Brazil

US-based El Paso Energy International is finalizing the drilling of a second well in its BS-1 offshore block in Brazil's Santos basin, the company's South American production president Ric Barton told BNamericas at the Rio Pipeline conference. "We are happy with the successes to date," Barton said, adding that if investments are approved, production could begin as early as 2005-2006.

The company is already considering constructing a pipeline to the Sao Paulo market. El Paso is also evaluating ways of transporting gas and oil discoveries at BM-CAL-4 block in the Camamu basin amounting to 304 billion cubic feet equivalent of proved and probable reserves, including about 17 million barrels (mb) of proved oil reserves and 21mb of probable reserves, according to the company's second quarter statement.

"Three possible means of transporting the product to the [Bahia state capital] Salvador market include a shuttle tanker system, tie-in with [federal energy company] Petrobras, and the construction of our own pipeline," said Barton. The horizon for Camamu basin to begin operations is the end of 2006 and into 2007, he added.

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