Petrobras, the world’s biggest crude producer in ultra-deep waters, estimates its Franco prospect and two other fields off Brazil’s southeastern coast hold about 3.6 Bbbl of commercial reserves.
Franco holds 3.06 Bboe, Carioca has 459 MMboe, and Sul de Tupi has 128 MMboe, the company said in regulatory filings, declaring the fields commercial. The three fields hold “good quality” oil, according to the filings.
Franco is “confirmed as a giant,” Bank of America Corp. analysts Frank McGann and Vicente Falanga Neto said in a report to clients today. The field’s “total potential could be substantially larger, though any additional barrels currently belong to the government.”
After declaring the reserves commercial, Petrobras and the government must negotiate a revision of the value of the transferred reserves set at $8.51 per boe in 2010, McGann and Falanga Neto said. While the Carioca field is smaller than originally expected a few years back, it’s in line with recent expectations, the analysts said.
Brazilian offshore oil fields must be given new names after they are declared to be commercial. Petrobras said it suggested to Brazil’s regulatory agency to change Carioca’s name to Lapa, Franco’s to Buzios, and Sul de Tupi to Sul de Lula. The new names refer to Portuguese-language names of fish or other types of sea life.
Carioca is located 270 km (170 miles) from the coast of Sao Paulo state. Franco is 200 km (124 miles) and Sul de Tupi is 300 km (186 miles) from Rio de Janeiro state.
Petrobras owns 45% of Carioca, BG owns 30%, and the Brazilian joint venture between Spain’s Repsol SA and China Petroleum and Chemical Corp. holds the rest.
Recommended Reading
Crescent Energy Closes $905MM Acquisition in Central Eagle Ford
2025-01-31 - Crescent Energy’s cash-and-stock acquisition of Carnelian Energy Capital Management-backed Ridgemar Energy includes potential contingency payments of up to $170 million through 2027.
Constellation Bets Big on NatGas in $16.4B Deal for Calpine
2025-01-10 - Constellation Energy will acquire Calpine Corp. in a $26.6 billion deal, including debt, that will give the pure-play nuclear company the largest natural gas power generation fleet.
Report: Will Civitas Sell D-J Basin, Buy Permian’s Double Eagle?
2025-01-15 - Civitas Resources could potentially sell its legacy Colorado position and buy more assets in the Permian Basin— possibly Double Eagle’s much-coveted position, according to analysts and media reports.
Petro-Victory Buys Oil Fields in Brazil’s Potiguar Basin
2025-02-10 - Petro-Victory Energy is growing its footprint in Brazil’s onshore Potiguar Basin with 13 new blocks, the company said Feb. 10.
Apollo Funds Acquires NatGas Treatment Provider Bold Production Services
2025-02-12 - Funds managed by Apollo Global Management Inc. have acquired a majority interest in Bold Production Services LLC, a provider of natural gas treatment solutions.