Sources say that the CO2 levels are crucial to BP-Petrobras' partnership in Bumerangue Block.

Three sources from the Brazilian state oil company told us that a possible partnership between BP, Petrobras and the British firm to develop BP's oil-and-gas find in Brazil's Pre-salt Layer would depend on the carbon dioxide levels of the reservoir. BP's chief executive Murray Auchincloss announced on Tuesday that BP would be looking for a partner to develop its Bumerangue Block discovery, which is considered by BP as its largest global find in 25 years. Brazil has become one of the largest oil producers in the world thanks to discoveries made nearly 20 years ago. The pre-salt region of Brazil is defined by vast fields of deepwater under a layer of salt beneath the ocean floor.

BP announced its discovery and noted it had found "higher levels of CO2" in an analysis at the rig site, which raised concerns about the commercial viability of the block. Petrobras is the world leader in presalt exploration and is developing technologies that will make it economically feasible to explore oil reserves with high levels of CO2, but the process is still very early, according to a source who spoke on condition of anonymity. The same source said that a large Petrobras discovery in the Jupiter field in the presalt region was not developed due to its higher than usual CO2 content. Experts have warned that a high level of CO2 could make a discovery uneconomical. Gordon Birrell, BP’s head of operations and production, said that he was not "particularly" worried about the carbon dioxide levels within the Bumerangue Block. Petrobras executives also speaking under condition of anonymity said that BP had not approached them to discuss Bumerangue. One of the sources, despite the CO2 concerns, said that the discovery looked "very promising." Third source believes BP will present data from Bumerangue to Petrobras at some point. He added that this could happen later, as it "appears there is still a lot of work to do to determine the viability" of the discovery.

Petrobras and BP have partnerships in certain blocks, such as Alto de Cabo Frio Central in the Campos Basin's pre-salt.

Petrobras declined to comment immediately when contacted. BP declined comment. (Reporting and writing by Fabio Téixeira, additional reporting by Marta Nogueira. Editing by Paul Simao.

(source: Reuters)