Energy Watchblog: Brazil

Latin America's top 10 onshore E&P projects

<div class="p1"><b>1) Vaca Muerta - Argentina</b></div><div class="p2">Vaca Muerta is one of the world's largest shale plays with estimated reserves of 22.8Bboe. Argentina's state-controlled YPF, Apache,Chevron, Total, ExxonMobil and Arpetrol are among the companies to have invested in exploration. The Loma La Lata Norte and Loma Campana areas alone are expected to attract investments of US$15bn.</div><div class="p3"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqFASaWpEW1_ws2ZX_pY2ExSg17p9PGTS1d-WqenET6ho7IEIFB5sly0yvGLd3GTK13uO8uSfC5C4uJfiKYX-z8_cmVRfUHRJ-qPp7Tg2y6H6qV1kKJpaAdo4Y_EXiTF_Y00omCk3WX7hp/s1600/250px-Latin_America_%2528orthographic_projection%2529.svg.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqFASaWpEW1_ws2ZX_pY2ExSg17p9PGTS1d-WqenET6ho7IEIFB5sly0yvGLd3GTK13uO8uSfC5C4uJfiKYX-z8_cmVRfUHRJ-qPp7Tg2y6H6qV1kKJpaAdo4Y_EXiTF_Y00omCk3WX7hp/s200/250px-Latin_America_%2528orthographic_projection%2529.svg.png" width="200" /></a></div><div class="p4"><b>2) Yasuní ITT (blocks 31 and 43) - Ecuador</b></div><div class="p4">State E&P operator Petroamazonas would develop the area home to an estimated 890Mb. Development of fields Tiputini and Tambococha to reach peak average of 200,000b/d from these areas will require US$2.8bn, and US$5bn if Ishpingo is developed.</div><div class="p5"><br /></div><div class="p4"><b>3) Junín 4 - Venezuela</b></div><div class="p4">Operated by Empresa Mixta Petrourica, a joint venture between Venezuela's state oil company PDVSA and China's CNPC, the Junín 4 area will produce up to 400,000b/d of heavy crude, according to the Venezuelan government. Junín 4 is located near El Destino, in the prolific Orinoco belt.</div><div class="p5"><br /></div><div class="p4"><b>4) Junín 10 - Venezuela</b></div><div class="p4">According to PDVSA Junín 10 has a production potential of 220,000b/d. Investment in the area is expected to reach US$14.1bn.</div><div class="p5"><br /></div><div class="p4"><b>5) Quifa SW - Colombia</b></div><div class="p4">Canada's Pacific Rubiales plans to double oil production from the heavy oil field following the implementation of its enhanced oil recovery scheme next year. Quifa SW has net 2P reserves of 73.1Mboe, about 21% of Pacific Rubiales' certified oil and liquids reserves base in Colombia.</div><div class="p5"><br /></div><div class="p4"><b>6) Burgos - Mexico</b></div><div class="p4">The Burgos basin has long been Pemex's largest gas producer but has seen production slip 14.2% since the beginning of 2013 to 1.19Bf3/d. It will see investment of 22.4bn pesos (US$1.70bn) in 2014, but that looks to get slashed in 2015 to 8.44bn pesos. The challenge for Burgos is moving into unconventional plays. The US Eagle Ford play stretches into Burgos and Pemex has made two shale discoveries in the play to date.</div><div class="p5"><br /></div><div class="p4"><b>7) Blocks 67, 57 - Peru</b></div><div class="p4">State hydrocarbons promotion agency Perupetro expects natural gas and crude commercial production on blocks 67 and 57 to begin by year-end. Perenco block 67 output will start with 6,000b/d with the goal of reaching 30,000b/d in 2017 and peak production of 60,000b/d in 2019. The block's proved reserves total around 100Mb. In the case of block 57, operated by Petrobras and Repsol, initial production is pegged at 5,600b/d NGLs and 85Mf3/d (2.41Mm3/d) gas with the aim of reaching 9,300b/d and 160Mf3/d in 2016. Proved reserves total around 562Bf3 and 30.7Mb NGLs.</div><div class="p5"><br /></div><div class="p4"><b>8) São Francisco basin - Brazil</b></div><div class="p4">Following the loud but until now hollow claims of local startups OGX and HRT, Petra Energia has opted for a tip-toe approach to its 24-block São Francisco basin campaign in Minas Gerais state. Petra earlier this year confirmed the existence of hydrocarbons at the 1-PTRA-17-MG well in block SF-T-121 and BNamericas tips more good news to come from the company's 7km2 acreage. Petra has already confirmed the presence of unconventional "tight" natural gas in 21 São Francisco wells and expects to begin production from the area in 2015.</div><div class="p5"><br /></div><div class="p4"><b>9) Chicontepec - Mexico</b></div><div class="p4">Despite accumulated investment of 183bn pesos, the unconventional, largely tight oil, area has failed to be an important producer for Pemex with production at just 61,000b/d. Investment in 2014 is expected to be 13.6bn pesos, 11.1bn in 2015, and 20.4bn pesos in 2016. The question is whether Pemex's integrated service contracts can attract new technologies and more productive wells at Chicontepec.</div><div class="p5"><br /></div><div class="p4"><b>10) Parnaíba blocks 2, 3 - Brazil</b></div><br /><div class="p4">Franco-Belgian firm GDF Suez earlier this month bought a 20% stake in the Parnaíba basin's blocks 2 and 3 from Brazilian mining giant Vale, describing the combined 6,137km2 area as "little explored but high in natural gas potential." GDF Suez, alongside partners Petrobras and BP are set to drill the first exploration wells from both blocks in March.</div>

Latin America's top 10 onshore E&P projects

1) Vaca Muerta - Argentina Vaca Muerta is one of the world's largest shale plays with estimated reserves of 22.8Bboe. Argentina's st...

Batista's OGP given debt deadline for Brazil offshore block

<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjv9IAYdgk92NY-Y38H8ecvaC3O1h6fB6VvwIzesr1N8v4dXQv0n21DBLDgR0rR5EqRTgvKc8jNMidsyqpVDgNFYr9jX7cAB0A0dD3ONxfE2qN6UFSNPs9kD685pQuo7aa1W1SjrfwPpX0J/s1600/brazil-oil-shale-map-400.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjv9IAYdgk92NY-Y38H8ecvaC3O1h6fB6VvwIzesr1N8v4dXQv0n21DBLDgR0rR5EqRTgvKc8jNMidsyqpVDgNFYr9jX7cAB0A0dD3ONxfE2qN6UFSNPs9kD685pQuo7aa1W1SjrfwPpX0J/s320/brazil-oil-shale-map-400.png" width="304" /></a></div><div class="p1">Brazilian oil firm OGP, formerly <a href="http://www.bnamericas.com/company-profile/en/OGX_Petroleo_e_Gas_Participacoes_S,A,-OGX">OGX</a>,  will be stripped of its stake in the offshore BS-4 block unless it  meets a mid-January deadline to repay debt, according to sector  regulator <a href="http://www.bnamericas.com/company-profile/en/Agencia_Nacional_do_Petroleo,_Gas_Natural_e_Biocombustiveis-ANP_,Brasil,">ANP</a>.</div><div class="p1"><br /></div><div class="p1">In  a statement released on Monday, BS-4 operator QGEP Participações said  OGX owed concession partners 73mn reais (US$31mn) having missed "three  cash calls" since October 30.</div><div class="p1"><br /></div><div class="p1">In a notice dated December 23, ANP said OGP had 15 working days to meet its financial obligations.</div><div class="p1">Failure  to do so will result in the "compulsory transfer or termination of the  agreement in relation to its participating interest in the block," the  regulator said.</div><div class="p1"><br /></div><div class="p1">OGP could not be reached for comment on Monday.</div><div class="p1"><br /></div><div class="p1">QGEP holds a 30% interest in BS-4 with the balance held by OGP (40%) and Barra Energia (30%).</div><div class="p1">Controlled  by failed entrepreneur Eike Batista, OGP is expected to submit a  restructuring plan to a bankruptcy court in Rio de Janeiro next month.</div><div class="p1"><br /></div><div class="p3">Batista's personal fortune is said to have fallen below US$1bn, having peaked at US$34bn early last year. Analysts blame the magnate's fall on unrealistic production targets based on false estimations.</div><div class="p1">Block BS-4 includes the post-salt Atlanta and Oliva fields, about 185km off Brazil's southeast coast in the Santos basin. </div><div class="p1"><br /></div><div class="p1">The consortium plans to start drilling a second early production system (EPS) well at Atlanta in January.</div>

Batista's OGP given debt deadline for Brazil offshore block

Brazilian oil firm OGP, formerly OGX , will be stripped of its stake in the offshore BS-4 block unless it meets a mid-January deadline to ...

Petrobras platforms inflate Brazil trade surplus

<h1 class="border-none titulo_sector" style="background-color: white; border-bottom-style: none; border-bottom-width: 0px; color: #666666; font-family: Arial, Helvetica, sans-serif; font-size: 25px; margin: 0px; position: relative;"></h1><div class="text-contenido" style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 1.1em; margin: 0px 10px 0px 0px;"><div class="p1" style="line-height: 18px; margin-bottom: 20px;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOMFt19TN4uyqh8yVDLAjKESuHYZDUrHFKUqZmLlJUCs-jyOrxqosU1ocqLON1LtEe6fUg0zSo0msZ63mOtIvIWGo1kcdr7l-lGM25qz0lo3TfSF89bZbKLBVAYP6XclWTShqSiE_Ib5SM/s1600/brazil_oil.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOMFt19TN4uyqh8yVDLAjKESuHYZDUrHFKUqZmLlJUCs-jyOrxqosU1ocqLON1LtEe6fUg0zSo0msZ63mOtIvIWGo1kcdr7l-lGM25qz0lo3TfSF89bZbKLBVAYP6XclWTShqSiE_Ib5SM/s320/brazil_oil.jpg" width="320" /></a></div><span style="font-size: 1.1em;">Brazil's federal government has been accused of artificially inflating the country's 2013 trade surplus by including the delivery of locally made oil platforms in outbound accounts.</span></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div class="p2" style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div class="p1" style="line-height: 18px; margin-bottom: 20px;">According to national daily Folha de S. Paulo, Brazil exported seven production units this year worth US$7.4bn to the country's balance sheet.</div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div class="p2" style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div class="p1" style="line-height: 18px; margin-bottom: 20px;">"This is despite the platforms not having left Brazilian shores," the newspaper said.</div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div class="p2" style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div class="p1" style="line-height: 18px; margin-bottom: 20px;">The units are acquired by state-run oil company Petrobras (NYSE: PBR) and its subsidiaries in the Netherlands, Panamá, Mexico and Switzerland.</div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div class="p2" style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div class="p3" style="line-height: 18px; margin-bottom: 20px;">"Thereafter they are used in Brazil by local firms as if they were under a lease contract," the report added.</div><div class="p3" style="line-height: 18px; margin-bottom: 20px;"><br /></div></div>

Petrobras platforms inflate Brazil trade surplus

Brazil's federal government has been accused of artificially inflating the country's 2013 trade surplus by including the delivery of...

Brazil's Wilson Sons in US$140mn emergency vessel deal

<div id="text_print" style="background-color: white; background-repeat: no-repeat no-repeat; border: none; color: #1e2228; font-family: Verdana, Geneva, sans-serif, Arial, Helvetica; font-size: 16px; line-height: 22.390625px; list-style-type: none; margin: 0px; padding: 0px;"><div style="background-repeat: no-repeat no-repeat; border: medium none; font-size: 22px; line-height: 25px; list-style-type: none; margin: 0px; padding: 5px 10px;"></div><div class="p1" style="background-repeat: no-repeat no-repeat; border: none; font-size: 1em; list-style-type: none; padding: 0px 0px 7px 12px;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7MIaJphEQbJ54RzGnfldOBeMpvMBaVb3Sbizb1YlyLlbMchE7TupLGBOa9zvMHvtpACEh2DkFubHJIQYSAFtHD072jo_sxk1hdCD7OWCPn_OJ0idcyrsI-1TZtMUgwuE4BGtb3YgpFHaj/s1600/544f9ef4c1a3a17c5485baa3307b6929.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="219" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7MIaJphEQbJ54RzGnfldOBeMpvMBaVb3Sbizb1YlyLlbMchE7TupLGBOa9zvMHvtpACEh2DkFubHJIQYSAFtHD072jo_sxk1hdCD7OWCPn_OJ0idcyrsI-1TZtMUgwuE4BGtb3YgpFHaj/s320/544f9ef4c1a3a17c5485baa3307b6929.jpg" width="320" /></a></div><span style="color: black;"><span style="font-family: Verdana,sans-serif;">Brazilian oil and gas logistics firm Wilson Sons will build four spill recovery vessels in a 333mn-real (US$140mn) deal with local emergency services provider Oceanpact.</span></span></div><div class="p1" style="background-repeat: no-repeat no-repeat; border: none; font-size: 1em; list-style-type: none; padding: 0px 0px 7px 12px;"><span style="color: black;"><span style="font-family: Verdana,sans-serif;">The units will be built at Wilson Sons' Guarujá shipyard in São Paulo state and are due for delivery by 2016, the Rio de Janeiro-based firm said in a statement.</span></span></div><div class="p1" style="background-repeat: no-repeat no-repeat; border: none; font-size: 1em; list-style-type: none; padding: 0px 0px 7px 12px;"><span style="color: black;"><span style="font-family: Verdana,sans-serif;">Each 67m vessel will have an oil storage capacity of 1,050m3.</span></span></div><div class="p1" style="background-repeat: no-repeat no-repeat; border: none; font-size: 1em; list-style-type: none; padding: 0px 0px 7px 12px;"><span style="color: black;"><span style="font-family: Verdana,sans-serif;">The deal takes Wilson Sons' vessel backlog to 20 units. They comprise of<span style="background-repeat: no-repeat no-repeat; border: none; font-size: 1em; line-height: 1.6em; list-style-type: none; margin: 0px 0px 10px; padding: 0px 0px 7px 12px;"> 12 tugboats, two platform supply ships, a remotely operated vehicle support vessel and an additional spill recovery unit.</span></span></span></div><div><span style="background-repeat: no-repeat no-repeat; border: none; color: #606a82; font-size: 1em; line-height: 1.6em; list-style-type: none; margin: 0px 0px 10px; padding: 0px 0px 7px 12px;"><br /></span></div></div>

Brazil's Wilson Sons in US$140mn emergency vessel deal

Brazilian oil and gas logistics firm Wilson Sons will build four spill recovery vessels in a 333mn-real (US$140mn) deal with local emergency...

Petrobras declares commerciality in presalt fields in Brazil

<div class="PromoBoxHeadLeft" style="border: 0px; color: #333333; font-family: inherit; font-size: 12px; font-style: inherit; font-weight: inherit; height: auto; margin: 0px; outline: 0px; padding: 0px;"><div class="PromoBoxHeadRight" style="border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; height: auto; margin: 0px; outline: 0px; padding: 0px;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgycK-HxRmW8ipM9Qrh6pyYx2NPv4bM8_1OVvNmRvMfbv-hx-EJauMj0JZxQA_suitt6m5Hws5MhMTfs8pyVcFaBBYOthp-8xvq1OoNB6n1AjRXuUoQRWp2zL_2NvNa9M694sw_AfcxVUHY/s1600/brazil_ft_diagram.gif" imageanchor="1" style="clear: left; float: left; font-family: inherit; font-style: inherit; font-weight: inherit; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="243" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgycK-HxRmW8ipM9Qrh6pyYx2NPv4bM8_1OVvNmRvMfbv-hx-EJauMj0JZxQA_suitt6m5Hws5MhMTfs8pyVcFaBBYOthp-8xvq1OoNB6n1AjRXuUoQRWp2zL_2NvNa9M694sw_AfcxVUHY/s400/brazil_ft_diagram.gif" width="400" /></a></div><b style="color: #37302b; font-size: 12px; font-style: inherit;">RIO DE JANIERO</b><span style="background-color: white; color: #37302b; font-size: 12px; font-style: inherit; font-weight: inherit;"> </span><span style="background-color: white; color: #37302b; font-size: 12px; font-style: inherit; font-weight: inherit;">–</span><span style="background-color: white; color: #37302b; font-size: 12px; font-style: inherit; font-weight: inherit;"> </span>Petrobras<span style="background-color: white; color: #37302b; font-size: 12px; font-style: inherit; font-weight: inherit;"> </span><span style="background-color: white; color: #37302b; font-size: 12px; font-style: inherit; font-weight: inherit;">has submitted its declaration of commerciality of the oil and gas accumulations of Franco and Sul de Tupi to Brazil’s National Petroleum, Natural Gas and Biofuels Agency (ANP). These areas are part of the transfer of rights agreement and are located in the</span><span style="background-color: white; color: #37302b; font-size: 12px; font-style: inherit; font-weight: inherit;"> </span>Santos basin<span style="background-color: white; color: #37302b; font-size: 12px; font-style: inherit; font-weight: inherit;"> </span><span style="background-color: white; color: #37302b; font-size: 12px; font-style: inherit; font-weight: inherit;">presalt area. In the proposal sent to the ANP, the names suggested for the new fields were Búzios and Sul de Lula (South of Lula) for Franco and Sul de Tupi, respectively.</span></div></div><div class="compBody" style="border: 0px; font-family: inherit; font-size: 12px; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 5px;"><div class="article-content-wrapper" itemprop="articleBody" style="border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px;"><div id="ContentBody" style="border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px;"><div style="background-color: white; border: 0px; color: #37302b; font-family: Arial, Helvetica, sans-serif; outline: 0px; padding: 10px 0px;">The volume contracted through the transfer of rights agreement for Franco area of 3.058 Bboe was confirmed in the exploratory phase. The presalt reservoirs in this field contain good-quality oil (26º to 28º API). During the execution of the Franco Mandatory Exploratory Plan, Petrobras acquired 3D seismic data for the entire area, drilled two mandatory wells and six additional ones, with the objective of delimiting and characterizing reservoirs. An extended formation test also was performed.</div><div style="background-color: white; border: 0px; color: #37302b; font-family: Arial, Helvetica, sans-serif; outline: 0px; padding: 10px 0px;">Búzios field is nearly 200 km (124 mi) off the coast of Rio de Janeiro state, wtih water depths from 1,600 m (5,249 ft) to 2,100 m (6,890 ft). The volume contracted through the transfer of rights agreement for the Sul de Tupi area, of 128 MMboe was confirmed during the exploratory phase. The presalt reservoirs in this field contain good-quality oil (27º API).</div><div style="background-color: white; border: 0px; color: #37302b; font-family: Arial, Helvetica, sans-serif; outline: 0px; padding: 10px 0px;">The Sul de Lula field is nearly 300 km (187 mi) off the coast of Rio de Janeiro state, at a water depth of approximately 2,200 m (7,218 ft). The production of Sul de Lula field will be made by the same production system planned for the Extreme South module of Lula field. The company forecasts the first oil of this system in 1Q 2017.</div><div style="background-color: white; border: 0px; color: #37302b; font-family: Arial, Helvetica, sans-serif; outline: 0px; padding: 10px 0px;">With the declarations of commerciality for the Franco and Sul de Tupi areas, the formal process to review the transfer of rights agreement starts. The review will take place on a block-per-block basis, taking into consideration the technical and economic premises of each area.</div><div style="background-color: white; border: 0px; color: #37302b; font-family: Arial, Helvetica, sans-serif; outline: 0px; padding: 10px 0px;">Petrobras has also submitted to ANP a declaration of commerciality for the Carioca oil accumulation, located in the Santos basin pre-salt. In the proposal sent to the regulatory agency, the consortium recommends that the new field, which is formed by reservoirs containing good-quality oil (of approximately 26º API), should be named as Lapa. With a total estimated recoverable volume of 459 MMboe, Lapa is one more large-size field discovered in Brazil’s presalt layer. The Lapa field is 270 km (167 mi) off the coast of the state of São Paulo at a water depth of 2,140 m (7,021 ft).</div><div style="background-color: white; border: 0px; color: #37302b; font-family: Arial, Helvetica, sans-serif; outline: 0px; padding: 10px 0px;">Along with the declaration of commerciality, the consortium submitted to the ANP the final report of its discovery evaluation plan, which was prepared as of the first well drilled in 2007. The 3D seismic data was gathered, five wells drilled, plus three formation tests and an extended well test were carried out in Carioca area.</div><div style="background-color: white; border: 0px; color: #37302b; font-family: Arial, Helvetica, sans-serif; outline: 0px; padding: 10px 0px;">Consortium BM-S-9 is operated by Petrobras (45%), in partnership with BG E&P Brasil (30%), and Repsol Sinopec Brasil (25%). After the declaration of commerciality, the Lapa Field Development Plan will be submitted to the ANP within 180 days. The company forecasts first oil for this field in 3Q 2016.</div><div><br /></div></div></div></div>

Petrobras declares commerciality in presalt fields in Brazil

RIO DE JANIERO – Petrobras has submitted its declaration of commerciality of the oil and gas accumulations of Franco and Sul de Tupi t...