Extraction cost in the Santos Basin may reach a minimum of US $ 5 / barrel, says Petrobras

 

Crude oil extraction costs in the Santos Basin may reach a historic low of $ 5 per barrel, but the timeframe for doing so will depend on the development of the area known as the Onerous Assignment, a Petrobras executive told reporters on Wednesday.

Large oil companies have invested heavily in Brazil, the largest producer in Latin America, to secure their holdings in the pre-salt layer, where billions of barrels of oil are stored under a thick layer of salt. The vast resources help reduce the extraction costs, which have already dropped to $ 6 / $ 7 a barrel at the Lula field in the Santos Basin, according to Joelson Falcão Mendes, executive manager of state oil’s ultra-deepwater production . The Lula field, the most productive in Brazil, has an average production of 879 thousand barrels of oil per day, and is operated by Petrobras in a consortium with Shell and Galp, Portugal. However, reaching $ 5 in Santos will depend on the pace of development of the concessionary concession area granted by the government in 2010 for Petrobras to extract 5 billion barrels of oil and gas. Meanwhile, the government and the oil company are still discussing a contract renegotiation in the area, also located in the Santos basin. Mendes, who was appointed to the committee renegotiating the contract with the government, offered no further details on how that would affect the extraction costs.

However, Mendes said that the P-67 platform, which was to start production between October and December this year in the northern part of the Lula field, could be postponed to January. He defended the time that Petrobras took to develop areas with complex logistics, noting that the consortium was completing the development phase of the Lula field, which was discovered in 2006.

“If there had not been some delays in building the systems, the timing would be even better, but the timing is very interesting and extremely competitive at the global level, anyway,” he said.

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