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Update Petrobras surge – Carioca field 33B crude BBL prospects

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This topic contains 1 reply, has 1 voice, and was last updated by  Charles Randall 12 years, 10 months ago.

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  • #3690

    Charles Randall
    Participant

    Petrobras Surges on 33 Billion-Barrel Field Estimate (Update4)
    2008-04-14 16:16 (New York)   By Carlos Caminada and Joe Carroll
         April 14 (Bloomberg) — Petroleo Brasileiro SA’s stock rose
    almost 6 percent after the head of Brazil’s oil agency said the
    offshore Carioca prospect may hold the equivalent of 33 billion
    barrels of crude
    , which would make it the world’s third-largest
    field.
         The estimate for the field off Brazil’s southeastern coast
    has yet to be confirmed by Petrobras
    , as the Rio de Janeiro-
    based company is known. Bruno Positiga, a spokesman for
    Petrobras, said the company is still studying the find.
         Only Saudi Arabia’s Ghawar and Kuwait’s Burgan fields are
    bigger.
    Ghawar holds an estimated 75 billion to 83 billion
    barrels of crude; Burgan has as much as 72 billion. Mexico’s
    Cantarell field in the Gulf of Mexico has 18 billion barrels of
    recoverable reserves, said Dick Gibson, a geologist who advises
    oil and natural-gas producers.
         “If all of those barrels are recoverable, that’s a very
    significant find,” said Gibson, president of Butte, Montana-
    based Gibson Consulting. “That whole area off the coast of
    Brazil is becoming a new oil province.”
         Petrobras shares rose 5.9 percent to 83.13 reais in Sao
    Paulo trading. Earlier the stock climbed as much as 7.6 percent.
    The rise in common and preferred shares added 9.2 percent to the
    company’s market valuation, increasing it to 421.9 billion reais
    ($249.7 billion).
         The Carioca field, also known as BM-S-9, is located beneath
    a layer of salt in the deepwater Santos Basin off Brazil’s
    southeastern coast, where Petrobras in November announced the
    discovery of the 8 billion-barrel Tupi field.
         With 33 billion barrels of oil, Carioca would be large
    enough to supply every refinery in the U.S. for six years,
    according to U.S. Energy Department figures.

                         No Official Information

         Haroldo Lima, director of Brazil’s National Oil Agency,
    discussed the reserves at a seminar in Rio de Janeiro and said
    no official information is available yet. Lima’s comments were
    confirmed by Fernando Manso, a spokesman for the agency, and
    were reported earlier by Folha de S. Paulo.
         Petrobras is the fourth-most valuable company in the
    Western Hemisphere, behind Exxon Mobil Corp., General Electric
    Co. and Microsoft Corp., according to data compiled by
    Bloomberg.
         The field is 45 percent-controlled by Petrobras. DCC Plc’s
    British Gas LP Gas Ltd. holds a 30 percent stake and Repsol SA
    controls 25 percent.
    Repsol’s U.S. depositary receipts surged as
    much as 21 percent to $44.85, the stock’s largest daily gain.
         New York-based Hess Corp., which owns stakes in offshore
    prospects near Carioca, rose as much as 12 percent to $103.55,
    the biggest increase since 1981. The stock closed 9.1 higher at
    $101.19.

                              May Be Biggest

         The Carioca field may become Petrobras’ biggest and it may
    “significantly” increase the company’s future production
    , said
    Eduardo Roche, a fund manager at Rio de Janeiro-based Modal
    Asset Management.
         “The potential for this field is gigantic,” said Roche,
    who helps manage about 1 billion reais in bonds and stocks,
    including Petrobras shares, at Modal. “Petrobras is among a
    handful of companies that have been able to renew its reserves.
    Its capacity to increase future output is absurd.”
         Brazil is home to South America’s second-largest oil
    reserves, behind Venezuela
    , according to London-based BP Plc.
         “We haven’t seen any discoveries that large in decades
    because we’ve punched enough holes in the Earth that we already
    know where most of the big fields are,” said Gibson, who has
    been working in the oil industry since 1975.
          Petrobras recently created a division to coordinate all
    exploration projects off the southeast coast, given its
    potentially large reserves.
         BG Group Plc on Feb. 7 raised its estimate of reserves in
    the Tupi field to the equivalent of 12 billion to 30 billion
    barrels of oil. Majority shareholder Petrobras estimates Tupi
    holds as much as 8 billion barrels of recoverable oil and
    natural-gas reserves. Tupi was the largest discovery since
    Kazakhastan’s Kashagan field, which has 12 billion barrels of
    recoverable reserves.

  • #6931

    Charles Randall
    Participant

    While there is no official confirmations yet – Petrobras Carioca offshore field may contain 33B barrels crude making it 3rd largest world and over 2X size of Brazils recent upgraded Tupi field 12-30 B barrels crude (~8 B recoverable).
     
    It will significantly reduce the amount of import crude Brazil is going to need (Sorry Chavez – this 33B would supply every refinery with crude for 6 years for comparison)!
     
    Petrobras now owns Pasadena (Crown) Coking Refinery & has been slated to receive some of the heavy offshore Brazil crude. And crude supply from this new Brazil offshore field would give Petrobras a distinct advantage over competitors for purchase of Valero’s Aruba refinery now up for sale. Additionally it is going to make it hard for PDVSA/ Chavez to negotiate one-sided terms on the new northern Petrobras Refinery in construction that is JV / linked to new Venezuelan Upgrader for crude half supply.
    Regards

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