First Libra crude cargo next month: Petrobras

The first 300,000-600,000 bl cargo of 29°API crude from the Mero field, the first commercial discovery in the massive Libra sub-salt project, should come to market in early January 2018, Libra project manager Fernando Borges said.

He declined to say whether the cargo has already been sold or what company might have already purchased it.

Petrobras late yesterday filed a declaration of commerciality for Mero, located in the northwest region of Libra, and pegged recoverable oil reserves from the field at 3.3bn bl, almost half of the low-end range of estimated reserves in the complex.

Borges, a Petrobras manager, said initial production at the field should hover around 17,500 b/d from one producing well until associated gas is re-injected in the reservoir, which should happen in the next 50 or 60 days. After that, production is slated to rise to around 40,000 b/d, making it one of the most prolific sub-salt wells in Brazil.

A 50,000 b/d floating production, storage and offloading unit (FPSO) will continue early well tests at Mero for one year. Petrobras plans to add four definitive production units at Mero starting in 2020.

Around 15pc of the oil produced at Libra will flow to state-controlled sub-salt marketing firm PPSA, the total after approved costs are deducted from the 42pc “profit oil” the company is due under the 2013 contract, a PPSA spokesperson told Argus today.

PPSA is a non-equity partner responsible for monitoring the production-sharing contract that governs Libra.

Assuming a crude price of $50/bl, PPSA could collect around $110mn from Libra in 2018. The company is still awaiting a decree from Brazilian president Michel Temer that will allow it to sell the government’s take directly, most likely to Petrobras and other Libra partners, rather than hold a tender for a third-party marketer.

Petrobras holds a 40pc operating stake in Libra. Shell and Total each hold a 20pc stake, Chinese state-owned companies CNOOC and CNPC each hold 10pc.

Source: Argus

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