Petrobras’s Tupi, Iracema oil reserves beat estimates

By Peter Millard
Bloomberg News

Petroleo Brasileiro SA, Brazil’s state-controlled oil producer, said that two oil fields in the Tupi and Iracema deepwater areas hold 8.3 billion barrels of recoverable crude, beating previous estimates.

The Lula field in the Tupi area has 6.5 billion barrels of recoverable oil and equivalents and the Cernambi field at Iracema holds 1.8 billion barrels, Rio de Janeiro-based Petrobras said in a regulatory filing today.

Petrobras aims to double proven reserves to as much as 35 billion barrels by 2014 as it develops discoveries in Brazil’s so-called pre-salt area in deep waters of the Atlantic Ocean, where Tupi and Iracema are located. Tupi is the second-biggest find in the Americas since Mexico discovered Cantarell in 1976, trailing the Brazilian government’s estimated deposits of as much as 15 billion barrels at the nearby Libra area.

Petrobras rose for a fourth day, climbing 1.1 percent to 26.95 reais in Sao Paulo trading at 8:32 a.m. New York time.
The state oil company previously said Tupi and Iracema, located in block BM-S-11, held 5 billion to 8 billion barrels of reserves. Petrobras declared the two areas commercial after drilling 11 wells.

(AP Photo)