Petrobras' Executive Board has approved investments of US $724...

Petrobras' Executive Board has approved investments of US $724 million in the Canto do Amaro (US $410 million) and Carmopolis (US $314 million) fields in the states of Rio Grande do Norte and Sergipe in Brazil, respectively.

These investments will raise daily production from the existing 48 thousand barrels per day (bpd) to 70 thousand bpd in 2012. The planned capital expenditures are part of the Mature Fields Recovery Enhancement Program (RECAGE), the purpose of which is the sustainability of production in mature fields with high rates of return at minimum risk.

A Generalized Approach to Primary Hydrocarbon Recovery
Fields Recovery Enhancement Program (RECAGE), the purpose of which is the sustainability of production in mature fields with high rates of return at minimum risk.

The Carmopolis field was discovered in 1963 and represents Petrobras' largest onshore accumulation while Canto do Amaro was discovered in 1985. Production at both fields peaked in 1989 when Canto do Amaro produced 40 thousand bpd and Carmopolis, 27 thousand bpd. The oil produced from the Carmopolis field has a 21-degree to 23-degree API and Canto do Amaro a 28-degree to 40-degree API.

The investments consist in increasing water injection levels, and upgrading, centralizing and rationalizing installations for injection, production and treatment, with significant scale gains which will result not only in enhanced output but also higher oil reserves. A major drilling program of production and injection wells (367) is to be undertaken, in addition to well conversion or recompletion (1387). Water injection systems will be expanded by 500 thousand bpd. The domestic content of the investments will amount to 90% of total expenditure.

Another benefit arising from the Canto do Amaro Project will be the elimination of effluent disposal since all the water produced will be reinjected into the wells. Currently, in Carmopolis no effluent disposal exists.