* Petrobras, Galp, QGEP, Barra own prospect
* Carcará wells could produce 35,000 boe/day -QGEP
* Well drilled on Carcará cost $300 mln, now closed
By Jeb Blount
RIO DE JANEIRO, Jan 3 An offshore oil prospect
owned by Brazil's Petroleo Brasileiro SA, Barra
Energia, QGEP Participacoes SA and Portugal's Galp
Energia SGPS SA will have significant flows when it
starts output later this decade, a project partner told
investors on Thursday.
Wells in the Carcará offshore oil prospect, one of the
largest recent "subsalt" discoveries in Brazil, will likely
produce as much as 35,000 barrels of oil and natural gas
equivalent a day (boepd) when it begins producing in 2018, QGEP,
which owns 10 percent of the prospect, said on a conference call
"We are expecting these levels of flows, orders of magnitude
similar to the Lula Field," Sergio Michelucci, director of
exploration and production at QGEP, said.
At current market values for Brent Crude oil, output
from such a well would be worth about $3.92 million a day or
about $1.43 billion a year. Most Brazilian oil trades at a
discount to Brent.
The Carcará prospect in the BM-S-8 block is 66 percent owned
by Petrobras, as Petroleo Brasileiro is known, 14 percent by
Galp and 10 percent each by QGEP and Barra Energia. China's
China Petroleum & Chemical Corp, known as Sinopec,
owns 30 percent of Galp's Brazilian assets, including Carcará.
On Wednesday, Petrobras said it finished drilling the
group's main well on the Carcará prospect in the Santos Basin
south of Rio de Janeiro and that it had discovered a 471-meter
(1,545-foot) column of high-quality oil in the prospect.
On Aug. 13 Reuters reported that Carcará was one of the most
significant discoveries in the country's subsalt polygon, a
region that contains most of Brazil's actual and expected future
The expected flow levels from Carcará wells, and there are
expected to be several producing wells in the area, will likely
be similar to those in the Lula Field, Michelucci said.
Lula, which is owned by Petrobras, Britain's BG Group Plc
and Galp, is part of an 8 billion barrel area that is one
of the largest discoveries in the world in the last three
decades. The area holds enough oil to supply all current needs
in the United States for about 14 months.
Lula produced an average 97,000 boepd in October, according
to Brazil's oil regulator the ANP, making it the seventh-largest
producing area in the country. The largest amount of oil was
produced by Lula's 7LL3DRJS well, which produced 36,025 barrels
a day in the month.
Drilling stopped in Carcará before reaching its planned
depth of 7,000 meters below the seabed because of rising costs
and increasing difficulty related to subsea rocks, Michelucci
The well cost more than $300 million to drill, QGEP said.
The well on Carcará is now being temporarily closed as
Petrobras, which operates the area, and its partners assess the
drilling to assess links to the Bem-te-Vi prospect in the same
BM-S-8 block, QGEP said.
QGEP shares fell 1.6 percent to 12.92 reais on Sao Paulo's
BM&FBovespa exchange in afternoon trading on Thursday. Petrobras
preferred shares, the company's most-traded class of stock, rose
2.39 percent to 20.19 reais.
Galp shares rose 0.9 percent to 12.33 euros in Lisbon to
trade at their highest levels in more than a month.