UPDATE 1-Brazil to pump first Tupi oil in May

Sat Mar 7, 2009 3:41am IST

Stocks

   

(Changes dateline, releads with new oil output in May)

By Fernando Exman and Peter Murphy

BRASILIA, March 6 (Reuters) - Brazil's state-controlled energy firm Petrobras (PETR4.SA)(PBR.N) will extract its first crude oil on May 1 from the potentially huge find it made below the salt layer of the Santos basin in late 2007, the country's president said on Friday.

The oil will be drawn from offshore subsalt reserves found in the 5-to-8-billion-barrel Tupi oil field, one of the largest deep water finds in history. It is part of a broader structure of oil at a depth of up to 7 kms (4.4 miles) that analysts have said could contain 50-80 billion barrels.

"What will happen is very important. We're going to extract the first barrels of oil at a depth of 6,000 meters. That is no small feat," President Luiz Inacio Lula da Silva said, inaugurating a gas treatment plant in Espirito Santo state.

Initial subsalt output from the Tupi field will be around 15,000 barrels per day rising to 30,000 barrels a day during a later stage of testing and then to around 100,000 barrels per day by 2010 when it will be in a more advanced pilot phase.

The Tupi oil will not be the first subsalt crude to see the light of day. Crude was pumped to great fanfare last September from a much smaller field in Espirito Santo state.

Petrobras said on Friday that it posted its largest-ever one-day output of Brazilian crude oil this week after several new platforms recently came on line.

The firm produced 2,012,654 barrels on Wednesday which was 12,420 barrels more than the previous record set on Christmas day of 2007.

"This result is due mainly to the coming on line of three new production platforms in the last months in the Campos basin (off Rio de Janeiro): P-51 and Cidade de Niteroi in the Marlim Sul field; and P-53, in Marlim Leste," the firm said.

Petrobras said good performance on several of its other platforms, notably P-52 and P-54, also helped push output to a new record. It said several more platforms would begin producing in 2009, some part-owned by other oil firms.

Last month the company announced plans to invest $174.4 billion over the next five years including in exploration and production. (Editing by Christian Wiessner)

  • Most Popular
  • Most Shared

DEFENCE

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage