Brazil's state-owned oil company Petrobras claimed on Monday that its recent offshore find may be the biggest in three decades. The news did not ease tensions on commodity markets, where crude Brent topped $110 for the first time.
Haroldo Lima told reporters the find, known as Carioca, could contain 33 billion barrels of oil equivalent, five times the recent giant Tupi discovery. That would further boost
Shares in Petrobras, which said studies on the find continued and would not comment on the figure, soared on the news. They were trading 5.7 percent higher at 83 reais in the late afternoon, after retreating somewhat from gains of more than 7 percent.
"It could be the world's biggest discovery in the past 30 years, and the world's third-biggest currently active field,"
He would not say whether the preliminary reserve estimate was recoverable or in-place. Recoverable reserves can constitute less than a third of in-place reserves.
Last year Petrobras put Tupi's recoverable reserves at between 5 billion and 8 billion barrels of oil equivalent, most of it light oil.
Petrobras tested one well at Carioca last year and is still drilling another. The company made the Tupi recoverable reserve estimate based on tests from two wells.
Petrobras said in a statement the second well had not yet reached the subsalt level and "more conclusive data on the potential of the block will be known after the evaluation process is finished."
FIND COULD BE 'REALLY HUGE'
Analysts said the estimate was probably still very preliminary, although it did not contrast with some geologists' forecasts made in the past.
"It's a very relevant number, basically triples the reserves. But it still seems a little premature to have a precise number while they are drilling a second well," said Felipe Cunha, an analyst with Brascan bank in
The Carioca area lies west of Tupi in the prolific
"It's subsalt, and we knew there were big expectations for the subsalt cluster in addition to Tupi. But, if this is confirmed, it's really huge," said Sophie Aldebert, associate director with Cambridge Energy Research Association in
"With that size, you'd have plenty of gains of scale that could easily offset the subsalt geological challenges," she added. The challenges include shifting salt clusters that require reinforced piping and producing in deep waters from huge depths under the ocean floor.
Geologists had long voiced the theory that Tupi could have an even bigger neighbor containing light oil or natural gas. If the reserves are confirmed,
Petrobras also has said previously it sees good prospects for major oil finds in the subsalt areas in the
Most of Petrobras crude comes from heavy-oil
The company expects to start an extended production test at Tupi early next year and then crank up a 100,000 barrels per day pilot project there in late 2010 or early 2011. Analysts say, however, the costly subsalt development can take more time than Petrobras expects.
Date created : 2008-04-14