Brazil's Petrobras sees deep-water yields in 2010

The president of Brazil's state-run oil company said Friday he expects new ultra-deep-water finds to yield 100,000 barrels of oil a day by 2010.
Petroleos Brasileiro SA President Sergio Gabrielli said his company would begin testing production in the fields on Sept. 2, but that he did not expect the new fields to have a significant impact on oil production until 2013.
Gabrielli declined to estimate the size of the newly found reserves, which some geologists believe can hold as much as 55 billion barrels of oil, but he said Petrobras had the "biggest potential to grow of all major oil companies."
The company's Brazilian oil and gas reserves stood at 10.573 billion barrels of oil equivalent at the end of 2006, according to the measuring criteria used by the U.S. Securities and Exchange Commission.
Analysts have said that if tests confirm the massive reserves, Brazil could become a major oil exporter.
But the oil lies not only deep below the ocean's surface but also far below the ocean floor, below the Earth's salt layer, making it difficult and expensive to extract.
Earlier Friday, Petrobras executive Antonio Carlos Pinto said the company had spent US$1 billion on exploratory oil wells since 2005 in the offshore area.
But Pinto said the cost of drilling in the ultra-deep area off Rio de Janeiro's coast has dropped significantly since test drilling began.

Updated : 2021-01-29 00:21 GMT+08:00