OSLO, March 29 Brazil's state oil company
Petrobras's (PETR4.SA) plan to build a ship rig for a heavy oil
project in the Papa Terra field with its partner Chevron (CVX.N)
is on schedule, the company said on Thursday.
Petrobras and Chevron are in talks to build a Floating
Production Storage and Offloading (FPSO) vessel which should,
when the two companies formally agree, begin to produce oil in
2010. Petrobras, who controls the field, earlier said production
would start at the end of 2011.
"Everything is on schedule and it will start as planned,"
Chief Executive Jose Gabrielli de Azevedo told Reuters at a
conference in Oslo. He added that the project is going well.
Chevron, which owns a 37.5 percent stake in the Papa Terra
field, said it would take around 24 months to build the FPSO
before production can start.
"We are hoping to meet the schedule that Petrobras is
proposing... If Papa Terra starts producing in 2010 it would be
a nice addition to our portfolio," Chevron country manager Tim
Petrobras estimates the deep-water field contains at least
700 million barrels of oil.