OFFSHORE MAGAZINE, PennWell Corporation, Tulsa, OK - Offshore magazine, first published in 1954, is a monthly publication recognized as the worldwide leader for covering the key issues and trends relative to offshore technology, oil and gas E&P (Exploration and Production) operations. It is the world’s most highly respected magazine dedicated entirely to the offshore industry, and enjoys the highest and most widely read circulation in its class. Since 1910, The PennWell Petroleum Group has been the industry leader for coverage of and service to the worldwide petroleum industry.

Its foundation magazines are Oil & Gas Journal, Offshore, Oil, Gas & Petrochem Equipment, Oil & Gas Financial Journal, LNG Observer and The Petroleum Buyers Guide. The group also produces targeted e-Newsletters, hosts global conferences and exhibitions, seminars and forums, directories and technical books, print and electronic databases, surveys and maps.

We were introduced to http://www.offshore-mag.com because of our interest in the oil finds in Brazil.

Brazil is now at the top of OFFSHORE interest and they plan an upcoming webcast lecture:

(AkerSolutions Technip)

The Petrobras FPSO Experience: Technology Evolution and Application In the US Gulf of Mexico
Date: August 14, 2008
Time: 2:00 PM EDT 11:00 AM PDT 18:00 GMT
Length: Approximately one hour
Speakers: César Palagi, Walker Ridge Production Asset Manager, Petrobras America Inc.

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According to Bloomberg data, Petrobras is the fourth-most valuable company in the Western Hemisphere, behind Exxon Mobil Corp., General Electric Co., and Microsoft Corp. “We think this is part of a major transformation of Petrobras, which could lead to it becoming a much larger company in terms of production and reserves over the next five to 10 years,” Merrill Lynch analysts wrote.

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Brazil in OPEC?

If confirmed, the Carioca-Sugar Loaf find would vault Brazil into the Top 10 countries for oil reserves, ahead of Organization of Petroleum Exporting Countries (OPEC) such as Nigeria and Libya. It also would surpass the US, point out oil analysts.

Director Estrella, who is known for conservative forecasts, told Offshore that: “Considering the geologically provable dimensions of the whole pre-salt reservoirs, including Santos, Campos, and Espírito Santo basins, plus other prospects, such as geologically estimated recoverable oil and natural gas in the Tupi accumulation, we may be dealing with recoverable volumes very much larger than the current Brazilian proven reserves.”

Brazilian President Luiz Inacio Lula da Silva said on several occasions that when Brazil becomes a crude exporter it would like to join OPEC and work to lower oil prices.

Director Estrella pointed to the emergence of a new organization, the National Oil Companies (NOCs), as a forum of exporting and non-exporting countries that meets annually and has a different objective from OPEC: “In my opinion, NOC’s mission, through long-term strategic partnerships, is more interesting for Petrobras and raises the country’s political profile as an uncontestable leader of emerging countries.

I am not in favor of Brazil joining OPEC. New oil producing countries started exporting but did not join OPEC, which in a way is weakening OPEC’s economic and political power.

OPEC is going down the path of political obsolescence.”

While the potential Brazil find could add significant supplies to a global oil market many see as tight, it would likely take the better part of a decade before any of the oil finds its way to consumers. The site will need to be studied further, and many more facilities must be designed, built, and transported before it can start producing oil.

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The OFFSHORE Magazine July 2008 issue (July 7, 2008) includes three articles about Brazil. We give here the references and small parts from these articles:

July 7, 2008
 http://www.offshore-mag.com/display_arti…

Title: “Pre-salt discoveries continue in Brazil. ” (Above is a 6 page article)

by Peter Howard Wertheim, Contributing Editor

Potential for super-giant fields remains to be confirmed in ultra deepwater.

Deep under the Atlantic Ocean, Brazil’s state-controlled Petrobras has made what could prove to be the largest oil discovery in 30 years, and one that would propel the already prospering country into the major league of oil exporters.

The head of Brazil’s upstream regulatory body National Petroleum and Biofuels Agency (ANP), Haroldo Lima, said in April that the find in the Carioca exploration area could contain 33 Bboe, which would make it the world’s fourth-largest field. Lima did not say whether his unofficial estimate was of recoverable reserves or in-place resources and Petrobras did not comment.

Brazil Energy Minister Edison Lobão was quoted as saying on São Paulo’s Estado newswire that he would neither confirm nor deny Lima’s statements. However, he cautioned that any announcement on the extension of oil fields should only be made once the government is certain about the data.

For context, current Brazilian crude oil proven reserves are at 14.4 Bbbl.

Outstanding sequence of discoveries
“This is one of the most impressive oil finds globally in terms of scale,” says David Riedel of New York-based Riedel Research Inc. The deepwater discovery, coming after a similar find announced last year by Petrobras, suggests that the world still has major pools of oil to be found.

For Brazilian analysts, it also casts new doubts on peak oil theory, which postulates that world oil demand will soon outpace supply.

Riedel says uncertainty remains regarding the size of the Carioca discovery on BM-S-9 block, which lays under 2 km (6,562 ft) of water, plus many more kilometers of sand, hard rock, and another 2 km of salt. The exploration area, also called Carioca-Sugar Loaf, is 275 km (171 mi) off the coast of São Paulo and Rio de Janeiro.

“Petrobras is very good at deepwater drilling but this is going to be very complicated stuff to get out of the ground,” he adds.

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July 7, 2008 http://www.offshore-mag.com/display_arti…

Title: “Jubarte field production enhanced with wellbore ESP”. (Above is a 4 page article)

by Marcos Pellegrini, Giovanni Colodette - Petrobras
Ignácio Martinez, Leandro Neves - Baker Hughes Centrilift

1,200-hp subsea system installed.

Through technological advances in ultra deepwater production, the highest horsepower-equipped electric submersible pump (ESP) to date was installed in the 1,400-m (4,593-ft) JUB-6 subsea well in the Jubarte field, offshore Brazil. The system is composed of a 1,200 hp motor and a pump capable of producing over 22,000 b/d of heavy oil (17º API). High flow rates and a longer subsea step-out were the drivers for selecting an ESP system as the artificial lift method for the project. Reliability is one of the main concerns of ESPs, and proper selection of the system for the application was critical for the run life of the equipment.

Operators and service companies are always searching for most cost-effective methods to produce deepwater reserves over the life of the field. Gas lift traditionally has been the preferred artificial lift method in offshore Brazil subsea applications with relatively short step-outs. But when high-flow production of heavy and viscous oil in a long step-out is needed, gas lift is not efficient. Electrical submersible pumping systems are the best option.

Jubarte field: The Jubarte field, in the northern part of the Campos basin, about 80 km (49.7 mi) offshore from the state of Espírito Santo, was discovered in January 2001. An extended well test was performed to evaluate drilling, completion, artificial lift technology, and to verify reserves. Then, Petrobras started Phase 1 production with FPSO P-34. Four wells were planned to produce around 60,000 b/d of oil. Two of the wells are produced using gas lift, the third one is an ESP installation on the seabed, and the fourth is a subsea ESP wellbore installation.

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July 7, 2008 http://www.offshore-mag.com/display_arti…

Drilling zero discharge offshore Brazil in an environmentally sensitive area. (Above is a 3 page article) These drillings are in shallow waters near terrific white sand beaches.

by Perry Morris - El Paso Oil & Gas
Keith Browning, Kevin Redfern - Halliburton

One key element of the El Paso Oil & Gas exploration program offshore Brazil during the recent drilling and completion of the Acai and Cacau exploration wells in the Camamu basin was to ensure compliance with a zero discharge policy. The wells were in a shallow 23 m (75.5 ft) water depth, near shore and 11 km (6.8 mi) from an extremely environmentally sensitive area. Brazilian authorities designated the coastal area as a future recreational development.

Equipment outlay: El Paso contracted Halliburton’s Baroid Surface Solutions services to provide equipment and personnel at the rig site to transport cuttings and drilling waste to a dedicated cuttings barge. To protect the delicate subsea reef environment and the nearby Camamu white sand beaches, El Paso installed booms completely surrounding the Todco 156 rig. The dedicated cuttings barge was moored outside the booms to allow access to the barge for dumping cuttings further out into deepwater. This configuration resulted in a greater distance than normal for cuttings transportation.

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The deepwater oil-finds locations towards the the souther part of Brazil’s coast - the Santos Basin and the Caramba, Sugar Loaf, Carioca, Parati, Tupi and Jupiter discoveries.

Location map of the exploration blocks in Santos basin showing the recent giant and super-giant pre-salt oil and gas discoveries.

The shallow water oil-basins that are close to environmentally sensitive coasts. North of Rio de Janeiro - the Espirito Santo and Camamu basins and the Potiguar basin in the northeast.

The Acai and Cacau exploration wells in the Camamu basin are in a shallow 23 m (75.5 ft) water depth near shore.