In the net: Petrobras' plans in Santa Cruz
Petrobras goes for Argentine goal
Brazilian giant Petrobras has given the green light to a $90 million development on the company's first ever discovery in the Argentine province of Santa Cruz, with a production target of 6000 barrels per day.
Petrobras struck oil at Estancia Agua Fresca in early 2006, and recently took the decision to go ahead with a project that will include a separation plant and a pipeline to existing facilities in the region, Decio Oddone, Petrobras executive manager for the southern cone region, said.
Possible oil reserves on the area are put at between 10 million and 15 million barrels.
Petrobras produces close to 6 million cubic metres of gas per day in Santa Cruz province, and 4000 bpd of crude. Oil output will rise to 10,000 bpd as a result of the new project, Oddone said.
"Some preliminary production has already started, but the plant should be at full capacity next year," he said.
Petrobras also has investments in Argentina's Nuequen basin and forms part of a consortium with Spain's Repsol YPF and Uruguay's state-run Petrouruguay on two exploration permits in the Colorado Marina basin.
The partners are currently interpreting data from a seismic shoot on the Enarsa-1 block, and a first well is planned for 2010.
"We are looking at possible wildcat locations and we do not have a rig yet," Oddone said.
Work on the Petrobras-operated Enarsa III block is less advanced, and prepartions are being made for a seismic shoot there, Oddone added.
Association agreements were signed with Argentina's Enarsa for these areas in May 2006. The state entity retains a 35% stake in the area The blocks are located about 250 kilometres east of the city of Mar del Plata in deep waters on the Argentine continental shelf.