This excerpt taken from the PBR 6-K filed Jan 11, 2006.
Master Plan for Development of Natural Gas and Oil Production in the Santos Basin
(Rio de Janeiro , January 11, 2006). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, announced that it has approved the Master Plan for Development of Natural Gas and Oil Production in the Santos Basin and that the base of its next exploration and production unit is to be located in the city of Santos (state of São Paulo). Petrobras and its partners are to invest approximately US$ 18 billion over the next 10 years in exploration and production activities in the Basin.
The Master Plan forecasts an increase of about 12 million m3 /day in the supply of gas to the Brazilian southeastern market as from the second half of 2008. By the end of 2010, this volume should have grown to about 30 million m3 /day, thus making a significant contribution to reducing the country's dependence on imported gas.
The development of the Santos Basin is based on five production poles:
This pole has a production potential of between 9 and 10 million m3/day of gas by 2010.
Petrobras plans to install a gas treatment plant on the coast of the state of São Paulo to be integrated with the projects for expanding the Merluza Pole and developing the Mexilhão Pole.
The Santos Basin Master Plan also provides for the implementation of new projects for the South Pole with future production estimated at about 140,000 bpd of oil and 3 million m3 /day of gas.
The Santos Basin
Petrobras and its partners hold 40,663 Km 2 of exploratory concessions in the Basin. About 52% of the concession area is located in the state of São Paulo . The remainder is situated in the states of Rio de Janeiro (35%), Santa Catarina (7%) and Paraná (6%).
Production from the Santos Basin will make a decisive contribution to the consolidation of the Brazilian market for natural gas and to the country's self-sufficiency in oil supplies.