• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 22 hours What China is Learning from Russia's War in Ukraine and its Consequences
  • 6 days How cheap Chinese tires might explain Russia's 'stalled' 40-mile-long military convoy in Ukraine
  • 14 mins Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 2 days Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65

Statoil Increases Brazilian Operations Despite Analyst Warnings

Norwegian oil producer Statoil is hoping to expand its operations in Brazil by entering a second phase of exploration at the Peregrino offshore oilfield.

As reported by Norwegian Solutions, the next phase of exploring will be done with its Chinese partner - the Sinochem Group - at Statoil’s largest non-Norwegian offshore operation. Initially explored in 2011, output at Peregrino surpassed 100 million barrels of oil for the first time last year.

The continued exploration “will add about 250 million barrels of recoverable reserves,” said a Statoil spokesperson.

“The expectation is to expand production. In all, 22 wells – 15 producers of oil and seven water injectors – should be drilled in Peregrino phase two”.

The spokesman also confirmed Statoil’s commitment to Brazil, which included around one thousand employees manning both onshore and offshore operations as well as running eleven tankers.

“Brazil remains one of the most important countries in Statoil’s international strategy. We intend to keep it that way,” the spokesman said.

Analysts have warned Statoil about boosting their investment in Brazil such as the US$2.5 billion purchase of the Petrobras’s operating interest of 66 percent in the BM-S-8 offshore license in the Santos basin.

“It’s a world class asset,” Executive Vice President Tim Dodson said to Bloomberg about the field estimated to hold between 700 million and 1.3 billion barrels equivalent of recoverable oil. Nevertheless, Norwegian oil experts warn that oil prices will need to rise to US$70 to 80 per barrel in order for Statoil to profit off the BM-S-8 site.

By Erwin Cifuentes for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News