Houston Chronicle: Shell Says Brazil Oil Sites Are Viable: 27 December 2005

RIO DE JANEIRO, Brazil — Four offshore oil exploration areas owned jointly by Royal Dutch Shell PLC, Brazilian state-run oil company Petroleo Brasileiro SA, and Exxon Mobil Corp. are commercially viable, Shell's Brazilian unit said in a statement Monday.

The four areas are within the BC-10 offshore block located about 74 miles off the coast of Brazil's southeastern state of Espirito Santo.

Shell and Petrobras each have a 35 percent stake in the block, while Texas-based Exxon Mobil has 30 percent.

The block which has reserves estimated at 400 million barrels of oil, could produce between 60,000 and 100,000 barrels a day of crude as of 2009, according to Shell.

The declaration comes after oil was found in six of 13 wells that were drilled in the area.

Petrobras says Brazil will become self-sufficient for its own oil needs in 2006. Brazil's domestic demand is close to 2 million barrels per day.

Click here to return to ShellNews.net HOME PAGE