Libra field may produce up to 1.4 MMBOPD
Brazilian crude oil production is growing, and has risen to the ninth-largest producer of petroleum in the world, according to the EIA.
Brazil produced 3.3 MMBPD of crude oil and other liquids so far this year, up from 3.2 MMBPD last year. Production has grown due to Brazilian pre-salt development, which now accounts for more than one-third of the country’s oil output.
First discovered in the offshore Santos Basin in 2005 by Petrobras, pre-salt deposits are very complex to develop. Very high depths and pressures forced Petrobras and its partners to develop new technologies before production could begin. The EIA estimates the overall pre-salt zone has billions of barrels of oil in place, making it a very significant target.
The largest pre-salt discovery so far, the Libra field, began producing in November. Early production has been around 50 MBOPD from a FPSO vessel, but development is only beginning. Additional FPSOs will expand production capacity in coming years. Brazil’s National Agency of Petroleum, Natural Gas and Biofuels estimates that Libra production could reach 1.4 MMBOPD, or nearly half of current Brazilian output.
Libra is the first pre-salt field to be auctioned under a production-sharing model, all previous plays were simply granted to Petrobras without any competition. Libra is still operated by Petrobras, which holds 40%, but Total (20%), Shell (20%), CNOOC (10%) and CNPC (10%) also have stakes.
Exxon moves into offshore Brazil – looking at opportunities to work with Petrobras in E&P, gas and chemicals
ExxonMobil is looking to move into Brazilian offshore, and has partnered with Petrobras to this effect. The pair jointly acquired six offshore blocks in the Campos Basin in the Brazil National Agency of Petroleum’s 14th tender round, and signed a memo of understanding today. Under the memo, the tow companies will “evaluate areas of mutual interest that can bring together their world-class experience across all sectors of the oil and gas production value chain, including opportunities for cooperation in exploration, production, gas and chemicals both inside and outside Brazil.”
