World
 
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Petrobras, Respol keep up Mexilhao partnership talks
AFP
Rio de Janeiro
Petroleumworld.com 09 12 06
Brazil's Petrobras remains in exclusive talks with Spain's Repsol YPF for
a partnership to develop the massive Mexilhao gas field in the Santos Basin
offshore Sao Paulo state, Petrobras E&P director Guilherme Estrella said.The talks with Repsol continue even after Petrobras said in July it plans
to spend around $2 billion to develop Mexilhao to produce 8-9 million cubic
meters/d of gas in 2009, but did not name any partners for the development. At
the time, Petrobras executives said they couldn't confirm whether Repsol and
Petrobras were still planning on joining ranks at Mexilhao."We are still in a period of exclusive talks with Repsol on the Mexilhao
development," Estrella said. However, Estrella said that Petrobras would only
accept a partner on the project as the field operator with a majority stake.Mexilhao, located in the BS-400 block, and the neighboring BS-500 block,
form the core of Petrobras' natural gas expansion plans between 2007-2011. The
two blocks contain around 14.8 Tcf of gas, the largest gas discovery yet for
Brazil.Petrobras has said Brazil needs at least $22 billion in natural gas
investments over 2007-2011, and Petrobras expects its future joint venture
partners for gas projects will provide more than $3 billion of those funds.--Josh Schneyer, newsdesk@platts.com
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http://www.platts.com/infostore/product_info.php?cPath=1_29&products_id=29Platts 11 09 06
Copyright ©2006 Platts. All Rights Reserved.
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