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Devon taps first oil from Brazil field
NewsOK.com
TULSA
Petroleumworld.com 07 31 07Devon Energy Corp. has expanded its drilling success to another continent, the Oklahoma City energy company said Monday as it celebrated its first oil production from a field offshore Brazil.
Production from the well in the Polvo field off the coast of Rio de Janeiro is in about 300 feet of water and is expected to peak at about 50,000 barrels of oil per day. The field is believed to contain more than 50 million barrels of recoverable oil.Devon is the operator of the development with a 60 percent interest. SK Corp. of Korea controls the remaining 40 percent interest.
"This is the first visible sign of work in Brazil, where we've been at work for a few years,” said Stephen J. Hadden, Devon's senior vice president of exploration and production. "We think this area holds a lot of potential for Devon in the future.”
Devon has interests in nine other prospects in the area. The company has contracted for a drilling ship beginning in 2009 to help develop those prospects.
"We're gaining experience of operations in that environment that we think will transfer to other fields in the region,” Hadden said.
The find makes Devon operator of the first well in Brazil that does not include the Brazilian national oil company Petrobras as a partner.
"This is yet another monster find for Devon,” said Bob Rader, vice president of Capital West Securities in Oklahoma City. "One thing Devon has is new technology. And they're willing to invest money in areas where the technology has good applications.”
Devon and its partners discovered oil in the field in 2004.
"When we made the discovery, we decided to move forward with a fast track for developing the field,” Hadden said. "Because it's in 300 feet of water, production is a little different from the concepts in the deeper water.”
Devon shares added 79 cents, or 1.1 percent, Monday to close at $75.38 on the New York Mercantile Exchange.
NewsOK.com 30 07 07Copyright© 2007 NewsOK.com. All rights reserved.
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