Posted on 04/16/2009 12:58:21 PM PDT by thackney
Petroleo Brasileiro SA (PBR), or Petrobras, will start seeking bids for new rigs in the next couple of months as it marches on with its ambitious five-year investment plan.
The Brazilian state energy giant in January announced it planned to invest $174.4 billion in 2009-13, including $28.6 billion this year -- an increase from $23 billion in 2008, which is unusual as global oil majors including U.S. firms Chevron Corp. and ConocoPhillips are cutting back on investment.
Petrobras is banking on the ultradeep pre-salt area off Brazil's coast to elevate its status to one of the world's largest oil and gas producers.
The area, also known as Santos Basin, could add 8 billion-12 billion barrels to Brazil's reserves -- at 14 billion barrels of oil equivalent, or BOE, in 2008.
The company, which awarded contracts for 12 rigs last year, still needs 28 more over the next five years as part of its expansion.
"We will divide them (28 rigs) into lots of 5-7," Chief Financial Officer Almir Barbassa told a news conference Thursday, adding the company will seek bids for the first lot in 2-3 months.
Each drillship, a rig that can drill up to 3,000 meters in water, is estimated to cost over US$600 million, said Barbassa.
Petrobras is aiming to produce a total of 2.76 million BOE a day this year, and ramp up output to 3.66 million BOE in 2013.
The company expects the first oil production from Tupi, part of its pre-salt Santos basin, on May 1.
Pre-salt field output will be competitive at under $40 a barrel, Barbassa said.
(Excerpt) Read more at rigzone.com ...
Brazil solved their energy problem the correct way; they drilled their way out of it!<
There is no other way.
Drill here. Drill now.
Brazil’s got the right idea....when oil get’s back to $150/barrel, that country will become the new Dubai, although they will have to share the wealth with an additional 200 million people...
You didn't get the memo? The 0 is building us a bunch of high speed trains and that will reduce our dependence on foreign oil!
I don’t know if oil goes back to $150, but absolutely, Brazil has the right idea and is executing it.
Total Oil Production
Brazil Energy Profile
http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=BR
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