Chevron, Petrobras Develop Papa Terra Field
Chevron, Petrobras have already started producing oil
with the aid an oil platform at the Papa-Terra oil and gas field off the southern coast of Brazil. Aiming at more oil
flow in the area, the two giant companies expect the second drilling ring and platform can reach the site in the year end.
The Papa-Terra was discovered in 2003. It is estimated to output 140,000 barrels of crude oil per day.
The high development of Papa Terra can be contributed the tacit cooperation of the Petrobras and Chevron with their skills and professional connected knowledge.
And this project is conductive to Chevron because it can recover its strength in Brazil. It had to shut down its only field in Brazil, Frade due to oil spill in 2011. Since then, Chevron has not cooperated with Latin American again since the accident cause anger among the local officials.
The spill was expected to lose 2,400 barrels to 3,700 barrel. This was a very small proportion among the many spills in history. But Chevron and drill-rig operator were charged $20 billion for damage, while their staffs were also charged.
At last, Chevron settled these two civil lawsuits for more than $40 million. And the whole accident was cool down.
Chevron and Exxon Mobil and other oil giants have joint in the auction of oil and natural gas fields. But the two companies had not desire to obtain part of Libra field which is estimated to hold about 12 billions barrels of recoverable crude. They both did not register for a sale of offshore natural gas block.
Chevron only bought an exploration block in a bid last May. The company had very proportional possession in Brazil, that including the block off Brazil northern coast, Papa Terra, Frade and Maromba. All these can not sustain the company’s continuous development.
Chevron said that the relationship with Brazil was significant. But it also did not give up the development chances in other North American nations. It has already signed an contract with Argentina to develop the Vaca Muerta field which could have the potential to be the next huge shale oil deposite. Besides, it also retain its relationship with pdVSA despite the great protest of anti- American from the region
Chevron could also get the same response in Brazil just like in Argentina and Venezuela if it expects future development.
Chevron has both glory and hardship in investing these countries. It would be a miracle if the company has very boosted achievement in Brail since it had gone through a lot in these years.