Brazilian state-run energy giant,
Petroleo Brasileiro SA
) provided an update on its proven reserves in the pre-salt
region that comprise over a quarter of the company's total proven
reserves. The pre-salt reserves saw a 43% year-over-year
growth in 2013 from the 42 wells drilled in the region, in
addition to the strong results from the platforms at the Campos
and Santos Basins.
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Petrobras also announced that it set a new pre-salt production
record of over 390,000 barrels of oil per day (Bbls/d) on Jan 14,
breaking the previous record of 371,000 Bbls/d. A day earlier, at
the Lula field, a second production well on the platform Cidade
de Paraty came online which contributed to the above result. The
total output from the platform is 58,000 Bbls/d, with 28,000
Bbls/d contribution from the new well.
The Santos Basin, producing from the pre-salt region, was the
major contributor to the record production, comprising 51%. Nine
production wells are operational in the basin with an average
production level of 25,000 Bbl/d per commercial well. It was much
higher than the production levels at the North Sea and the Gulf
of Mexico, indicating the promising nature of the pre-salt
Petrobras' total production from the pre-salt fields has crossed
290 million barrels of oil equivalent since 2008, with more to
come from the new promising acreage. Last month, Petrobras
announced the Declaration of Commerciality for three areas -
Lapa, Búzios and Sul de Lula - in the Santos Basin as well.
Petrobras achieved cent percent exploration success in 2013 in
the pre-salt region, discovering hydrocarbons from all its
Santos pre-salt region could see further development in 2014 as
17 new wells are to be connected to the operational platforms.
The latter half of 2014 will see two new platforms coming online
in the Sapinhoá Norte field and Iracema Sul field, with 5 new
wells interconnected to it. The pre-salt production record could
reach a new level in 2014 with these new platforms and the 22
wells that are expected to come online.
Petrobras currently holds a Zacks Rank #2 (Buy). One can also
consider energy sector players like
Pembina Pipeline Corporation
Seadrill Partners LLC
Clayton Williams Energy, Inc.
). All these stocks currently sport a Zacks Rank #1 (Strong Buy).