Gas problems solved: biggest oil find in 30 years?

BigVE · 04-14-2008, 07:37 PM

http://tvnz.co.nz/view/page/536641/1710862

New joint oil find in Brazil
Apr 15, 2008 9:50 AM

An offshore find by Brazilian state oil company Petrobras in partnership with BG Group and Repsol-YPF may be the world's biggest discovery in 30 years, the head of the National Petroleum Agency said.

Haroldo Lima told reporters the find, known as Carioca, could contain 33 billion barrels of oil equivalent, five times the recent giant Tupi discovery. That would further boost Brazil's prospects as an important world oil province and the source of new crude in the Americas.

Shares in Petrobras, which said studies on the find continued and would not comment on the figure, soared on the news. They were trading 5.7% higher at 83 reais in the late afternoon, after retreating somewhat from gains of more than 7%.

"It could be the world's biggest discovery in the past 30 years, and the world's third-biggest currently active field," Lima, head of the government's oil and fuel market regulator, told reporters at an industry event in Rio de Janeiro.

He would not say whether the preliminary reserve estimate was recoverable or in-place. Recoverable reserves can constitute less than a third of in-place reserves.

Last year Petrobras put Tupi's recoverable reserves at between 5 billion and 8 billion barrels of oil equivalent, most of it light oil.

Lima said his data came from Petrobras at an informal level.

Petrobras tested one well at Carioca last year and is still drilling another. The company made the Tupi recoverable reserve estimate based on tests from two wells.

Petrobras said in a statement the second well had not yet reached the subsalt level and "more conclusive data on the potential of the block will be known after the evaluation process is finished."

Find could be 'really huge'

Analysts said the estimate was probably still very preliminary, although it did not contrast with some geologists' forecasts made in the past.

"It's a very relevant number, basically triples the reserves. But it still seems a little premature to have a precise number while they are drilling a second well," said Felipe Cunha, an analyst with Brascan bank in Rio de Janeiro.

The Carioca area lies west of Tupi in the prolific Santos basin, off the coast of Sao Paulo state. BG has a 30% stake in the project and Repsol 25%.

"It's subsalt, and we knew there were big expectations for the subsalt cluster in addition to Tupi. But, if this is confirmed, it's really huge," said Sophie Aldebert, associate director with Cambridge Energy Research Association in Brazil.

"With that size, you'd have plenty of gains of scale that could easily offset the subsalt geological challenges," she added. The challenges include shifting salt clusters that require reinforced piping and producing in deep waters from huge depths under the ocean floor.

Geologists had long voiced the theory that Tupi could have an even bigger neighbor containing light oil or natural gas. If the reserves are confirmed, Brazil could jump into the top 10 oil countries by reserves, surpassing nations like Nigeria.

Petrobras also has said previously it sees good prospects for major oil finds in the subsalt areas in the Campos and Espirito Santo basins north of Santos, but it is focusing mainly on Santos at the moment.

Most of Petrobras crude comes from heavy-oil Campos basin fields, but recent subsalt discoveries could make Brazil a major producer of higher quality oil.

The company expects to start an extended production test at Tupi early next year and then crank up a 100,000 barrels per day pilot project there in late 2010 or early 2011. Analysts say, however, the costly subsalt development can take more time than Petrobras expects.

teedubya · 04-14-2008, 07:46 PM

Petrobas, stock?

**007** · 04-14-2008, 07:48 PM

It won't matter.

Mr. Laz · 04-14-2008, 07:49 PM

sounds good to me .... not the middle east

they will still find some excuse to keep prices up though

**Bowser** · 04-14-2008, 07:59 PM

When do we invade?

Brock · 04-14-2008, 08:01 PM

WE'RE SAVED

**007** · 04-14-2008, 08:01 PM

Quote:

Originally Posted by Laz

sounds good to me .... not the middle east

they will still find some excuse to keep prices up though

Nah, the save the earth people will keep anyone from utilizing it.

KCChiefsMan · 04-14-2008, 08:02 PM

so Brazil is now an axis of evil?

**Mr. Flopnuts** · 04-14-2008, 08:04 PM

Quote:

Originally Posted by KCChiefsMan

so Brazil is now an axis of evil?

Soon. Soon.

**Bugeater** · 04-14-2008, 08:08 PM

Quote:

Originally Posted by Laz

sounds good to me .... not the middle east

they will still find some excuse to keep prices up though

Don't worry, the "not enough refineries" excuse will be good for several more decades.

**chiefforlife** · 04-14-2008, 08:17 PM

Shortly after the press release on the Huge oil discovery, it was also noted that Brazil is believed to have WMD's.

StcChief · 04-14-2008, 08:28 PM

More supply = good. Just might take a while to get it running.

Plenty of dead plant life around warm equator area for 1000s of years

**Donger** · 04-14-2008, 08:30 PM

But, but, I heard that peak oil has happened? How can this be?

Boon · 04-14-2008, 08:42 PM

Quote:

Originally Posted by Bowser

When do we invade?

Smoke · 04-14-2008, 09:00 PM

Hot women AND oil?

I may defect...Viva Brazil!!

04-14-2008, 07:37 PM
BigVE Veteran Join Date: Apr 2001 Location: centralKs Casino cash: $10005250	Gas problems solved: biggest oil find in 30 years? http://tvnz.co.nz/view/page/536641/1710862 New joint oil find in Brazil Apr 15, 2008 9:50 AM An offshore find by Brazilian state oil company Petrobras in partnership with BG Group and Repsol-YPF may be the world's biggest discovery in 30 years, the head of the National Petroleum Agency said. Haroldo Lima told reporters the find, known as Carioca, could contain 33 billion barrels of oil equivalent, five times the recent giant Tupi discovery. That would further boost Brazil's prospects as an important world oil province and the source of new crude in the Americas. Shares in Petrobras, which said studies on the find continued and would not comment on the figure, soared on the news. They were trading 5.7% higher at 83 reais in the late afternoon, after retreating somewhat from gains of more than 7%. "It could be the world's biggest discovery in the past 30 years, and the world's third-biggest currently active field," Lima, head of the government's oil and fuel market regulator, told reporters at an industry event in Rio de Janeiro. He would not say whether the preliminary reserve estimate was recoverable or in-place. Recoverable reserves can constitute less than a third of in-place reserves. Last year Petrobras put Tupi's recoverable reserves at between 5 billion and 8 billion barrels of oil equivalent, most of it light oil. Lima said his data came from Petrobras at an informal level. Petrobras tested one well at Carioca last year and is still drilling another. The company made the Tupi recoverable reserve estimate based on tests from two wells. Petrobras said in a statement the second well had not yet reached the subsalt level and "more conclusive data on the potential of the block will be known after the evaluation process is finished." Find could be 'really huge' Analysts said the estimate was probably still very preliminary, although it did not contrast with some geologists' forecasts made in the past. "It's a very relevant number, basically triples the reserves. But it still seems a little premature to have a precise number while they are drilling a second well," said Felipe Cunha, an analyst with Brascan bank in Rio de Janeiro. The Carioca area lies west of Tupi in the prolific Santos basin, off the coast of Sao Paulo state. BG has a 30% stake in the project and Repsol 25%. "It's subsalt, and we knew there were big expectations for the subsalt cluster in addition to Tupi. But, if this is confirmed, it's really huge," said Sophie Aldebert, associate director with Cambridge Energy Research Association in Brazil. "With that size, you'd have plenty of gains of scale that could easily offset the subsalt geological challenges," she added. The challenges include shifting salt clusters that require reinforced piping and producing in deep waters from huge depths under the ocean floor. Geologists had long voiced the theory that Tupi could have an even bigger neighbor containing light oil or natural gas. If the reserves are confirmed, Brazil could jump into the top 10 oil countries by reserves, surpassing nations like Nigeria. Petrobras also has said previously it sees good prospects for major oil finds in the subsalt areas in the Campos and Espirito Santo basins north of Santos, but it is focusing mainly on Santos at the moment. Most of Petrobras crude comes from heavy-oil Campos basin fields, but recent subsalt discoveries could make Brazil a major producer of higher quality oil. The company expects to start an extended production test at Tupi early next year and then crank up a 100,000 barrels per day pilot project there in late 2010 or early 2011. Analysts say, however, the costly subsalt development can take more time than Petrobras expects.
Posts: 4,829

04-14-2008, 07:46 PM	#2
teedubya Most Valuable Poster Join Date: Oct 2003 Casino cash: $9470002	Petrobas, stock?
Posts: 36,659

04-14-2008, 07:48 PM	#3
007 Shaken. Not stirred. Join Date: Sep 2002 Location: London Casino cash: $13940126 VARSITY	It won't matter. __________________ My dear girl, there are some things that just aren’t done. Such as, drinking Dom Perignon ’53 above the temperature of 38 degrees Fahrenheit. That’s just as bad as listening to the Beatles without earmuffs.
Posts: 65,557

04-14-2008, 07:49 PM	#4
Mr. Laz Don't Tease Me Join Date: Dec 2000 Location: KS Casino cash: $11047037	sounds good to me .... not the middle east they will still find some excuse to keep prices up though __________________
Posts: 95,626

04-14-2008, 07:59 PM	#5
Bowser sorta mod-ish Join Date: Jan 2004 Location: KC North Casino cash: $3181616	When do we invade?
Posts: 101,076

04-14-2008, 08:01 PM	#6
Brock Say hello to my little friend Join Date: Aug 2000 Location: Larryville Casino cash: $9598422	WE'RE SAVED
Posts: 47,314

04-14-2008, 08:02 PM	#8
KCChiefsMan AIC Join Date: Oct 2002 Location: West Roxbury, MA Casino cash: $10004900	so Brazil is now an axis of evil?
Posts: 11,478

04-14-2008, 08:17 PM	#11
chiefforlife Colorado Chief Fan Join Date: Feb 2006 Casino cash: $6233147	Shortly after the press release on the Huge oil discovery, it was also noted that Brazil is believed to have WMD's.
Posts: 5,589

04-14-2008, 08:28 PM	#12
StcChief Playing for #1 Draft Pick Join Date: Oct 2003 Location: Just West of Lambs land Casino cash: $10004900	More supply = good. Just might take a while to get it running. Plenty of dead plant life around warm equator area for 1000s of years __________________ sig test for this screwy schema
Posts: 25,901

04-14-2008, 08:30 PM	#13
Donger "Think BOOM!" Join Date: Nov 2003 Location: 33.675° N 106.475° W Casino cash: $10079900 VARSITY	But, but, I heard that peak oil has happened? How can this be? __________________ I think the young people enjoy it when I "get down," verbally, don't you?
Posts: 181,390

04-14-2008, 09:00 PM	#15
Smoke Registration Required Informat Join Date: Apr 2004 Location: Missouri Casino cash: $10004900	Hot women AND oil? I may defect...Viva Brazil!!
Posts: 159