World’s 5th: Brazil’s Pre-Salt Oil Might Top 100 Billion Barrels

    Petrobras's oil rig

    Petrobras's oil rig Pre-salt oil reserves from Brazil, which are already under concession, could reach as much as 80 billion barrels of oil equivalent, said the head of Brazil's National Petroleum Agency (ANP), Haroldo Lima, on Friday, November 7.

    "Recently, prognosis indicates at least 50 billion boe and a maximum… of 70, 80 billion barrels," he told reporters, adding that this would include only licensed blocks.

    Asked if reserves could surpass 100 billion boe if unlicensed areas were included, he said: "Yes, they could."

    "Dimensions are so big that we still don't have a good vision of what this means to Brazil," he added.

    By comparison, Kuwait's reserves are 99 billion barrels; United Arab Emirates, 97 billion; Venezuela, 80 billion and Russia, 60 billion. Only Iraq (115 billion barrels), Iran (136 billion), Canada (179 billion) and Saudi Arabia (260 billion) have larger known reserves of oil.

    Brazil's current proven reserves stand at 14.4 billion barrels of oil equivalent if natural gas is included, according to a statistical review produced by British Petroleum.

    The pre-salt oilfields are trapped beneath a layer of salt under about 7,000 meters of sea water and rock and are among the most inaccessible on earth. The geological formation of which they are part is about 800km long and 200km wide, running up the southern Brazilian coast from the Santos Basin, about 200km offshore.

    The deposits were discovered in 2007 and since then the government has suspended its annual auctions of concessions of geographical blocks, in which oil companies accept exploratory risk in return for rights over any oil and gas they may discover.

    However ten concessions in the Santos Basin had been sold before the government realized the potential of the new fields.

    Mercopress

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    • Show Comments (6)

    • Falupa

      Oil in Brazil
      Oil in Brazil is a major contributor to the country’s wealth. Because of this I believe that Brazil will be strong in the coming years especially as the world’s oil supply dwindles. This country will need to focus on how to monetize their assets. The stock price is so low because of the market right now, which only gives you reason to buy into oil right now.

    • ch.c.

      Petrobras was priced higher at $20 dollar a barrel oil then it is at $60 a barrel oil
      What an idiot, the one who wrote this stupidity.
      He cant even read a chart…as usual !

      The stock was at US$ 2,50 at the low of 2002 and at Us$ 6.50 at the top for 2002 !

      Hmmmmm !

      Concerning the Brazilian POTENTIAL oil reserves :
      Venezuela has far more than that.
      Venezuela has far less population than Brazil. Do your maths on a per capita basis !
      Venezuela Orinoco oil is Onshore, Brazil Tupi oil is offshore and very very very deep therefore very costly to produce.
      But…but…but…Venezuela has still plenty of POVERTY despite the oil boom of the last 6-8 years !

      To Ric “Is this oil worth extracting at $61 a barrel? “
      Good question. Many “experts” predict that there will be years of delay now for the TUPI fields. Time will tell.
      Petrobras said their production costs will be at US$ 35.- before Government taxes, royalties etc etc.
      And the US$ 61.- NYMEX reference oil price is not the price producers receive. This price is F.O.B at Cushing, Oklahoma, USA !

      And the funny story is the Brazilian explanation to the eventual production delay :
      “Exploration of new offshore oil fields in Brazil may be hindered for two years because the government is having trouble writing rules to govern the finds, Julio Bueno, Rio de Janeiro state’s industry secretary, said.
      “The political discussions will immobilize exploration in Brazil,” Bueno, former head of BR Distribuidora, the fuels distribution arm of Petroleo Brasileiro SA, Brazil’s state- controlled oil company, said in an interview in his office in Rio de Janeiro. “I’m very cynical about anything getting done in the next two years.”
      A review of the oilfield rules is two months late and may be further slowed by President Luiz Inacio Lula da Silva’s looming “lame-duck” status ahead of elections in 2010, Bueno said.
      Last November, the government removed blocks near the recently discovered Tupi field from auction and began studying whether Brazil needs a batch of more-restrictive rules governing foreign companies’ participation.
      “They are only putting up the least attractive and most risky fields,” Bueno said. “We are having a debate that will go nowhere and can only hurt the Brazilian people.”

      Smiles

      You can see that whatever is published by the Disinformation & Propaganda Dept at the Planalto Palacio, next to Robin the Crook office, is somewhat different when you read the comments from the people really involved !

      But quite normal…under HIS HIGHNESS REIGNS !

    • jon

      Aes,

      You are right and it may stay there for awhile regardless of price until technology is developed to extract this highly inaccessible oil

    • aes

      It is worth talking about. The price of Petrobras is undervalued. The potential for profit is as saleable as realized profit. Petrobras was priced higher at $20 dollar a barrel oil then it is at $60 a barrel oil. The problem for oil now is storage space. Leaving the oil burried under the salt is a natural place to store this oil, saving the cost of storage if it were to be extracted now. Having a gold mine is semantically nearlly as good as having gold already above ground.

    • Ric

      Big Question
      Is this oil worth extracting at $61 a barrel?

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