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

2013/07/16

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
  • BRICS Leaders to Push for Bloc's Interests at G20

    2016/09/07 As the leaders of Brazil, Russia, India, China and South Africa (BRICS) held an informal conference on the sidelines of the G20 Summit in Hangzhou, the consensus was to pursue issues of world and mutual interest to BRICS member nations at the G20. With world economic recovery remaining uneven, the economy was a major schedule at the meet on September 4. The five will as well focus on the implementation of their respective national increase strategies with innovation as a key driver for mid- and long-term increase, which jells with the G20 Blueprint on Innovative Increase.
  • Tough economic outlook in Brazil after president removed

    2016/09/02 Two dramas that grabbed world attention — the Olympics in Rio de Janeiro and the removal of Brazil's president — have presently concluded. But Brazil is far from answering the biggest challenge facing the country: How can Latin America's major economy climb out of a deep recession? Brazil's economy shrank 3.8 % last year and the International Monetary Fund is forecasting it will shrink an extra 3.3 % this year. Brazil's unemployment rate hit 11.6 % in July, up from 8.6 % a year ago. And the budget deficit is on pace to reach almost $48 billion by the end of this year. Much of the grim news snowballed over the last year while Congress was consumed by the fight over President Dilma Rousseff's next. On Wednesday, the Senate answered that, voting 61-20 in favor of removing Rousseff from office for breaking fiscal laws in her management of the federal budget.
  • Dilma Rousseff supporters clash with police in Brazil; impeachment appealed

    2016/09/02 In Sao Paulo, Brazil's major city, supporters of Dilma Rousseff set fires, damaged property and clashed with police Wednesday night next the Federal Senate removed her from the presidency through impeachment. Police lined the streets and fired tear gas to quell any violent protesters, O Globo reported. Michel Temer, Rousseff's vice president, will serve the remainder of Rousseff's term, which ends Jan. 1, 2019. Temer attempted to calm the streets by saying that Rousseff's impeachment is "a moment of hope, to rebuild trust in Brazil. Uncertainty has come to an end. It's time to unify the country."
  • Brazil's president proclaims innocence at impeachment trial

    2016/09/01 In a session less electric than expected, Brazil's suspended president proclaimed her innocence at her impeachment trial Monday, branding her vice president a "usurper," calling the drive to oust her a "coup" and warning senators that history will judge them harshly if they oust a democratically elected leader on false charges. Dilma Rousseff's much anticipated appearance before senators who will decide this week whether to permanently remove her from office was characterized by the same defiance she has shown throughout an impeachment process that has divided Latin America's most populous country. But it was as well additional civil than the three previous impeachment trial sessions, at the same time as lawmakers from both sides got into heated exchanges.
  • Long isolated, Africa’s Jewish ‘islands’ bridged by photographer’s lens

    2016/07/25 The synagogues of emerging Jewish communities in Africa are often modest affairs at the end of bumpy dirt roads, communities which feel a historical or spiritual connection to Judaism, but are struggling to practice fully in their isolated conclaves. Judaism has always had a presence in North Africa, and later, in South Africa. But among this vast continent, dozens of new Jewish communities are beginning to reach out to the wider Jewish world. Some, like Ghana, believe they are historical descendants of Jewish traders in the Sahara. Others, in Uganda and Kenya, have felt a spiritual pull to Judaism. Photographer Jono David, 50, has attempted to capture intimate moments of small, emerging Jewish communities across Africa in 30 different nations and territories. An exhibition of some of those photos, The Children of Abraham and Sarah, is presently featured at Beit HaTfutsot, the Museum of the Jewish People, through December. It is part of an installation that as well includes Nina Pereg’s two videos, filmed at the Cave of the Patriarchs in Hebron, showing preparations to flip the holy site from a mosque to a synagogue and vice versa, during the two days each year at the same time as the whole complex is open to either Jews or Muslims.