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Brazil’s largest oil field discovery to cost USD 174bn to develop

09th August 2013

The cost of developing the Libra oil field is estimated to be the most expensive single oil project ever undertaken

ANP general director Magda Chambriard said that the field holds a potential volume of 26-42 billion barrels of oil with recoverable reserves of 8-12 billion

Brazil’s largest oil field may potentially become the most expensive single oil project ever developed.

 

According to IHS Energy Insight, it has been estimated that the field will cost around USD 174bn to develop, making it USD 14bn more expensive than the Kashagan field in the Caspian Sea.

 

IHS also said that the cost of extracting oil will be around USD 15 per barrel, making it cheaper than other recently discovered oil fields off the coast of West Africa and the Gulf of Mexico.

 

Discovered in May 2010, the 200 km by 800 km field underwent vigorous testing operations to determine how many barrels of oil could be extracted.

 

At a press conference in June, ANP general director Magda Chambriard said that the field holds a potential volume of 26-42 billion barrels of oil with recoverable reserves of 8-12 billion, thus becoming Brazil’s largest oi.

 

“[42 billion barrels of oil] is already something of the magnitude of 2/3 of Brazil’s total probable reserves,” Chambriard told reporters.

 

 “Of the oil volume in situ at Libra, if we project a recovery potential of 30 per cent, for example, Libra will be able to produce 8-12 billion barrels of oil, which is something absolutely amazing and unimaginable,” she added.

 

According to the ANP boss, Libra’s potential surpasses those of Brazil’s major fields combined, including Marlim, Marlim Sul, Albacora, Roncador and others. Two of the country’s largest oil fields, Marlim and Roncador, hold combined recoverable reserves of 4.5 billion barrels.

 

Bidding for the field will start in October rather than November as originally intended, the ANP boss revealed

Petrobras CEO Maria das Graças Silva Foster earlier this year said that oil production in Brazil will reach 5.7 million barrels per day in 2020.

 

Chief executive Jose Sergio Gabrielli also told in February Chinese news agency Xinhua that he expects Petrobras’ production to reach 3 mmbpd by 2014.

 

Earlier this month, ANP announced that total oil output in June 2013 rose to 2.6 mmbpd, up from 2.49 mmbpd against the same period last year, a rise of 4.75 per cent.