09RIODEJANEIRO14 - US OIL COMPANIES ONE STEP CLOSER TO PRE-SALT OIL DISOVERY IN BRAZIL'S SANTOS BASIN

Companhias petroleiras americanas a um passo mais próximo do petróleo pré-sal descoberto em Santos Basin no Brasil.
http://213.251.145.96/cable/2009/01/09RIODEJANEIRO14.html
REFS: A) 07 Sao Paulo 899, B) Rio de Janeiro 91, C) Rio de Janeiro 35, D) Rio de Janeiro 138,
E) Rio de Janeiro 135, F) Rio de Janeiro 159, G) Brasilia 910, H) Brasilia 1122,
I) Rio de Janeiro 237, J) Rio de Janeiro 235, K) Rio de Janeiro 237, L) Rio de Janeiro 245


Reference ID
09RIODEJANEIRO14

Created
2009-01-21 15:03

Released
2010-12-13 07:07

Classification
UNCLASSIFIED

Origin
Consulate Rio De Janeiro


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RUEHRG/AMCONSUL RECIFE 3488
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SIPDIS

STATE FOR WHA/BSC, WHA/EPSC, EB/ESC
USDOC FOR 4332/ITA/MAC/WH/OLAC/JANDERSEN/ADRISCOLL/MWAR D
USDOE FOR CAROLYN GAY AND RHEA DAVIS

E.O. 12958: N/A

SUBJECT: US OIL COMPANIES ONE STEP CLOSER TO PRE-SALT OIL DISOVERY IN BRAZIL'S SANTOS BASIN

Â1. U.S. oil companies Exxon and Hess, together with Brazilian partner Petrobras, have found evidence of oil in their highly anticipated pre-salt exploration block in Brazil's Santos Basin. Exxon, which operates the well, and Hess each own 40 percent of the concession while 20 percent is held by Petrobras.

Â2. The discovery was made at well 1ESSO3SPS (test well that began drilling in October 2008) in the BM-S-22 block at a water depth of 2,223 meters (7,294 feet), the National Petroleum Agency released on January 20.

The companies haven't determined if the find can be developed commercially but energy insiders expect the discovery in this block, called "Azulao", to be larger than the neighboring "Tupi" block which is currently the largest confirmed pre-salt find at 5-8 million barrels.

The Azulao block lies at the apex of what geologist consider the largest structure of the pre-salt oil and gas reserves.

Â3. Unrelated to the Azulao announcement, Exxon CEO Rex Tillerson visited Brazil last week. His trip took place among speculation that, with almost $37 billion of cash on hand, the company may be positioning for a major deal.

Rumors circulating include a takeover of Shell, a merger with BG Group (which also holds a major stake in Brazil pre-salt), or a partnership with Petrobras to finance and develop pre-salt oil development in Brazil.

MARTINEZ