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  • bluecheese4u bluecheese4u Nov 16, 2007 1:57 PM Flag

    BRAZIL? -- worlds 10 most important producers & exporters

    BRAZIL? -- worlds 10 most important producers & exporters

    Brazil: "Tupi" Opens Door to Big Oil

    Carlos A. S�nchez

    The discovery of a huge hydrocarbon deposit along the coast of Brazil feels like a gust of fresh air in a turbulent world upset by the endless hike in oil prices, the campaign of the United States against Iraq and Iran, and forecasts of increasing depletion of world fuel supplies.

    It is true the "Tupi" field is about 4.3 miles deep under the seabed and because of that it is estimated to start producing only in about five years. The fact is that this find brings a renewal of hope that the era of big oil discoveries of good quality has not ended and although at a higher cost, still findings of big-scale economically exploitable oil can be made.

    The first estimates indicate this oilfield contains between 5 to 8 billion barrels of oil and drilling will require investments for about 100 billion, according to the first press releases.

    The information published in the media carry estimates that vary constantly. However, all agree that it is a huge oil layer that jeans many positive consequences for Brazil.

    The state oil company Petrobr�s confirmed on November 8 a deposit between 5 and 8 billion barrels of oil and natural gas, in a new geological horizon deep in the Atlantic.

    The deposit by itself will increase proven reserves in all Brazil by 50 percent. The company also said that oilfield -almost 500 miles long and 124 miles wide- would hold as much probable reserves as to place this country among the exclusive club of the world s 10 most important producers and exporters.

    The Tupi oilfield was found in block BM-S-11 of about 38.6 square miles operated by Petrobr�s (65 percent) together with Portuguese Galp Energia (10 percent) and British BG Group (25 percent).

    This consortium obtained the rights in the year 2000, during a bid organizad by the National Petroleum Agency (ANP) by paying a bonus of 15 million reales (about 8.6 million dollars).

    The government withdrew 41 blocks located in the new geological horizon from a new auction scheduled for the end of November, by invoking the need to preserve the national interest.

    In the mid-term, the country pretends to double its current production of 2.0 million barrels per day (bpd) of crude and gas.

    Tupi oil is light, of high commercial value, but it is located in a horizon never reached before, beyond a salt bed a little over one mile tic which separates it from the country s traditional basins.

    Exploration and

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    • Petrobras has been a great play for over 2 years. The day they announced the Tupi discovery, the stock jumped 26% in one day. Petrobras has become adept at deep water drilling and extraction, and there are more finds anticipated off the coast of Brazil in the future. Venezuela sought to participate in this field, but was turned down immediately. I liked that. Petrobras is also one of the serious potential buyers of Valero's Aruba refinery.

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