Petrobras CEO: Production at Foz do amazonas could start in seven years

Magda Chambriard, Chief Executive of Petrobras, said on Tuesday that the Brazilian state-owned oil company could begin oil and gas production within seven years in the Foz do Amazonas Basin if the presence of large reserves is confirmed.

Ibama, the Brazilian environmental agency, held a Monday event

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Petrobras will drill an exploratory hole in Foz do Amazonas near the mouth the Amazon River. The drilling process should take around five months.

In an interview, Chambriard stated that "we could delineate a reservoir in two years. If it is good enough, then we will be producing within seven to eight years."

Chambriard said that if this deadline is met production will begin as Petrobras output in Brazil's presalt region begins to decline. This will offset the loss.

Petrobras considers the area where the drilling will take place, deep water off the coast of Amapa in the Amazonian State, as its most promising oil frontier. The geology is similar to that of nearby Guyana, which is home to ExxonMobil's massive fields.

Chambriard said that the company intends to drill six more wells in this environmentally sensitive area. Obtaining a license should be much easier for these additional wells, since most of the environmental requirements have already been met.

Ibama refused Petrobras' request to drill in 2023. The company appealed immediately, creating a rift within the Brazilian government between environmentalists and those who pushed for oil and natural gas development.

Petrobras has invested millions of reais in order to better prepare for an emergency spill.

(source: Reuters)