Americas > South America > Brazil > Brazil’s Libra deepwater oilfield expected to yield a million bpd

Brazil: Brazil’s Libra deepwater oilfield expected to yield a million bpd


The consortium that is awarded the right to develop the Libra prospect will likely need to drill for about four years next signing its production-sharing agreement, with commercial production likely to begin in the fifth year, ANP Director-General Magda Chambriard told a press conference in Rio de Janeiro.

The Libra deepwater oil field that Brazil plans to auction off Oct 21 will yield minimum output of 1 million barrels of crude per day, the National Petroleum Agency, ANP, said on Friday. That production would be equivalent to half of Brazil's current output of 2 million bpd.

ANP studies indicate that between 12 and 18 production platforms will be needed to develop Libra, whose recoverable oil is estimated at between 8 billion and 12 billion barrels, nearly equivalent to Brazil's current proven-reserve base of 14 billion barrels.
Libra, located some 183 km off the coast of Rio de Janeiro national in an area of the Atlantic Ocean where water depths range from between 1,700 meters and 2,400 meters, will be the initial pre-salt field to be auctioned off by Brazil.

The pre-salt frontier, a series of ultra-deep oil fields that were discovered in recent years and stretch for some 800 km off the coasts of the south-eastern states of Espirito Santo, Rio de Janeiro, Sao Paulo and Santa Catarina, could dramatically increase Brazil's proven-reserve tally and transform the country into a major crude exporter.

But accessing those fields, so-named because they are located under water, rocks and a shifting layer of salt at depths of up to 7,000 meters below the surface of the Atlantic, will be very costly and pose an enormous technical challenge.

The auction as well will be the initial Brazil will hold under a new production-sharing agreement, or PSA, system for pre-salt reserves.
In the PSA system, oil companies bear the mineral and financial risk of the project and use the money from oil sales to recover their costs. The money that remains next that is known as “profit oil” and is shared between the company and the government.
The winner of the auction will be the consortium that pledges to provide the national the highest proportion of profit oil.

ANP estimates that the Brazilian government will receive roughly 75% of the profits from the Libra field, taking into account its share of the profit oil, inclunding taxes and royalties.
Under the new contracts for the pre-salt fields, national-controlled oil giant Petrobras must be the sole operator of each PSA and have a minimum 30% stake in the all pre-salt projects. The remaining 70% may be divided part a maximum of five other companies.

Related Articles
  • Brazil Trade Minister Says New Argentina Leader 'Music to Our Ears'

    2015/11/25 Brazil's trade minister said on Monday that the election of pro-business candidate Mauricio Macri as Argentina's next president is good news for trade relations between the South American neighbors. Macri, the center-right mayor of Buenos Aires, ended additional than a decade of leftist Peronist policy in Sunday's election next promising to overturn the free-spending populism of outgoing President Cristina Fernandez. "All the signs are positive. (Macri) reaffirms the vision that Brazil is a strategic partner, he backs the position that Mercosur be additional open to other international networks," Trade Minister Armando Monteiro told Reuters while on an official trip to Chile's capital Santiago.
  • Xi Jinping offers morale booster to BRICS nations

    2015/11/16 Chinese President Xi Jinping on Sunday called on BRICS nations to strengthen confidence in increase and boost coordination within the emerging-market bloc so as to jointly cope with world challenges. Acknowledging that the five nations — Brazil, Russia, India, China and South Africa — are facing increasing complexities and difficulties and experiencing slower increase, Xi proposed that they upgrade their economic structures for long-term development. “China stands ready to share development opportunities with other BRICS nations and lift our economic cooperation,” he said at a BRICS leaders’ conference held in the Turkish resort city of Antalya on the sidelines of a Group of 20 (G20) summit. “Pure gold fears no fire,” Xi stressed. “As long as we hold firm confidence and strengthen coordination, the BRICS nations will surely sail through winds and waves.”
  • The biosecurity requirements are necessary because several horse diseases

    2015/11/11 The issue made headlines early in October at the same time as the chief of the Brazilian Equestrian Confederation, Luiz Roberto Giugni, suggested that delays in documents being issued by the country’s Ministry of Agriculture could from presently on jeopardize Olympic equestrian events being held there. Brazil's range of biosecurity measures includes the Deodoro Olympic equestrian venue, Rio do Janeiro's airport and the corridor in between. Brazil and the European Union have reportedly settled biosecurity-related arrangements that will allow the passage of sport horses in and out of Rio de Janeiro for next year’s Olympics. However, details of any transaction have from presently on to be posted on website of the Olympic Public Authority in Brazil, or the major Games website, Details of the transaction are expected to be released this week.
  • Petrobras import of US condensate help address refining shortage, but faces tax controversy in Brazil

    2015/11/10 But condensate arriving from the United States could be subject to Brazil’s CIDE levy because it has been partially processed, they said. Petrobras’ move to start buying processed U.S. condensate will help output at its domestic refining network, but the purchases have exposed a wrinkle in Brazilian law that could allow the national-run company to import the light oil business-free, tax lawyers and traders said. Typically, condensate is considered a very light form of crude found in oil or natural gas wells and in raw form is not taxable in Brazil. The concept of lightly processed condensate is peculiar to the United States. It arose last year as a way for U.S. producers to have it classified as a refined product to circumvent a decades-old ban on domestic crude exports. With U.S. condensates shipments presently hitting the export market, they are causing headaches for bookkeepers in the United States and Brazil.
  • Brazil oil workers stage national strike and stopped operations at 22 rigs

    2015/11/10 The strike had spread by early Monday to 34 of Petrobras's rigs in the basin and 22 “are totally paralyzed,” the FUP, the major union in Brazil's oil industry, said in a statement.Oil workers staging a national strike in Brazil said on Monday they had stopped all operations at 22 of national-controlled oil giant Petrobras's 44 rigs in the Campos basin, an offshore area that accounts for about 80% of the country's oil output. Oil workers declared a strike on Sunday. Seven other rigs affected by the strike are operating partially and the remaining five were handed over to emergency teams dispatched by the company to prevent a production shutdown.