Brazil Petrobras Resumed Drilling In Santos Basin BM-S-9 Block
January 29 2009 - 2:06PM
Dow Jones News
Brazilian state-run energy giant Petroleo Brasileiro (PBR)
resumed drilling Wednesday in a key subsalt exploration block in
the promising Santos Basin, according to the country's National
Petroleum Agency.
The Ocean Clipper rig started drilling in the Santos Basin's
BM-S-9 block, ANP data showed. Two previous pioneer wells in the
BM-S-9 block yielded the promising Guara and Carioca
discoveries.
The drill rig will target a total depth of 5,592 meters,
operating at a water depth of 2,140 meters, ANP data showed.
Petrobras is lead operator of the block with a 45% stake. BG
Group (BG.LN) has a 30% interest in the block, while Spain's Repsol
YPF (REP) holds a 25% share.
The BM-S-9 block is part of a group of four blocks that many
industry experts and government officials believe contains a
massive geological structure that could hold more than 30 billion
barrels of oil - and possibly much more. The structure crosses the
BM-S-8, BM-S-9, BM-S-21 and BM-S-22.
In 2008, nearly all of the test wells drilled in the region
showed signs of oil or natural gas, resulting in the announcement
of such finds as Bem-te-vi, Caramba, Carioca and Guara.
The last block in the area to be tested, BM-S-22, also showed
promising signs. Last week, ExxonMobil (XOM) notified the ANP that
a test well, dubbed Azulao, showed traces of oil. ExxonMobil
started the drilling program in October.
Separately, drilling also started at the BM-BAR-3 offshore block
in the Barreirinhas Basin. U.S. independent Devon Energy (DVN) has
contracted the Deep Water Discovery rig to start drilling. The rig
will target a depth of 4,825 meters in water 2,335 meters deep.
Devon holds a 100% stake in the exploration block.
-By Jeff Fick, Dow Jones Newswires; 55-21-2586-6085;
jeff.fick@dowjones.com
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