Brazilian President Luiz Inácio Lula da Silva (C) poses with Petrobras President Magda Chambriard (L) and other officials during a visit to an offshore platform. Photo: Ricardo Stuckert/PR

NNA News - Brazil's state-owned oil company Petrobras is looking to expand offshore exploration in Amapá as it seeks to replenish reserves ahead of an expected peak in pre-salt production in 2034 or 2035, according to Brasil 247.

Petrobras President Magda Chambriard said new exploration frontiers would be necessary to maintain Brazil's position among the world's 10 largest oil producers. Brazil currently ranks seventh, according to the report. “There is no future for an oil company without exploration,” Chambriard said, according to Brazil Stock Guide. She said about 80 percent of Brazil's current oil production comes from the pre-salt, increasing the importance of finding new reserves capable of sustaining production in the coming decades.

Chambriard recalled that Brazil once depended heavily on imported oil, with crude accounting for 48 percent of the country's imports in 1984. Brazil achieved self-sufficiency between 2006 and 2008 and, driven by pre-salt production, turned oil into its main export product over the past two years. “Losing this position would be a shame,” Chambriard said, adding that she expects oil to remain Brazil's main export item this year. Against this backdrop, Petrobras has confirmed an oil discovery in block BM-FZA-59, offshore of Amapá. The company does not yet have enough information to determine the size of the accumulation or establish its commercial viability.

Petrobras President Magda Chambriard speaks during an event. Photo: Ricardo Stuckert/PR

Discovery still requires further assessment

Drilling of the exploration well is expected to continue for another 15 to 20 days, after which Petrobras will need to delineate the discovery to determine the amount of oil present and how much could technically be recovered. “There is oil, there is a discovery, but we still do not know how much,” Chambriard said.

According to Chambriard, the results obtained so far are consistent with studies that had indicated significant potential in the region. Petrobras plans to drill three additional wells in BM-FZA-59 and is awaiting the environmental licensing required to continue the campaign. The company also plans to drill five wells in adjacent blocks.

Equatorial Margin central to exploration strategy

The drilling campaign is expected to help Petrobras assess the potential of the offshore portion of the Equatorial Margin off Amapá. The initial discovery does not yet constitute a commercial field and does not allow the company to make production, investment or revenue projections. “Everything indicates that it will be good. We are extremely optimistic about what we are finding here,” Chambriard said.