Brazilian oil and natural gas company QGEP Participacoes said
Thursday that wells at the promising Carcara subsalt prospect could
eventually rival production at the Lula offshore field that pushed the
Latin American country into the oil-industry spotlight.
Flow rates and reservoir conditions at the Carcara discovery
are superior to the Lula field, which has several of Brazil's
best-performing oil wells, producing about 28,000 barrels of crude per
day, QGEP Exploration Director Sergio Michelucci said during a
conference call. Lula, which currently produces about 100,000 barrels a
day, is estimated to hold recoverable reserves of between 5 billion and 8
billion barrels of oil equivalent.
"We imagine, if everything is confirmed, that would be the floor for [Carcara] production," Mr. Michelucci said.
State-run energy giant Petroleo Brasileiro SA (PBR, PETR4.BR),
or Petrobras, joined partners QGEP, Portugal's Galp Energia SPGS SA
(GALP.LB), and Barra Energia in announcing that work on the Carcara well
had ended but declined to give a size estimate for the find.
The Carcara discovery generated industry excitement because it
is among the thickest reservoirs ever discovered in Brazil's offshore
subsalt region. The subsalt is a cluster of ultra-deepwater oil finds
made off the coasts of Rio de Janeiro and Sao Paulo states. Carcara
encountered a reservoir 471 meters thick, the companies said.
Development of Carcara remains well into the future, with
development drilling planned for 2016 and 2017. First oil from the well
wouldn't be produced until 2018.
While the Carcara consortium hasn't divulged how much oil they
think they've found, Mr. Michelucci said multiple floating storage,
production and offloading vessels, or FPSOs, would be needed.
"For what we imagine the volume of the accumulation to be,
certainly we're going to need more than one FPSO," the executive said.
QGEP expects to have a new certified estimate of the oil
reserves contained in the company's offshore blocks by the end of the
first half, Chief Financial Officer Paula Costa said during the call.
The report would include a preliminary estimate for Carcara, the
executives added.
Petrobras is operator of the BM-S-8 block containing the
Carcara discovery, with a 66% stake. Galp holds 14%, with QGEP and Barra
Energia each retaining 10%.