Petrobras sees Tupi lifting costs below $8.20/bl

NEW YORK (Reuters) – Brazilian oil company Petrobras forecast lifting costs in its Tupi oil field will be lower than its current average $8.20 a barrel by the end of 2010, when the giant subsalt reserve is expected to start producing some 100,000 barrels per day (bpd).

A long-term production test of the wells at Tupi is set for the first quarter of 2009. The test will see between 20,000 and 30,000 bpd pumped from the field.


Assuming test production is successful, Petrobras plans to install a 100,000 bpd capacity floating production storage and offtake (FPSO) facility at Tupi by late 2010 to begin early production.

During test production, lifting costs will exceed Petrobras’ $8.20 a barrel average, Chief Executive Jose Sergio Gabrielli said in New York on Tuesday.

Reuters