This excerpt taken from the PBR 20-F filed May 22, 2009.
The Santos Basin, which covers approximately 348,900 km2 (86 million acres) off the city of Santos, in the State of São Paulo, is one of the most promising exploration areas offshore Brazil and the focus of our plans to develop domestic natural gas. At December 31, 2008, we produced oil from one field at an average rate of 1.8 mbbl/d and held proved crude oil reserves representing 0.5% of our total proved crude oil reserves in
Brazil. At December 31, 2008, we produced natural gas at an average rate of 0.721 mmm3/d (25.46 mmcf/d) and held proved natural gas reserves in the Santos Basin representing 17% of our total proved natural gas reserves in Brazil.
In January 2006, we approved the U.S.$18 billion ten-year Master Plan for Development of Natural Gas and Oil Production in the Santos Basin, which will substantially increase our gas production to meet increasing domestic gas demand. We subsequently established a second plan, known as Plangas, to accelerate gas production and build supporting infrastructure in the Santos and Espírito Santo basins. As part of this plan, we are developing the Mexilhão and Urugua-Tambau deepwater fields described below. We expect these investment plans to increase our average gas production from the Santos Basin from 0.66 mmm3/d (23.3 mmcf/d) in 2008 to 11.4 mmm3/d (402.5 mmcf/d) in 2010.
Gas development plans for the Santos Basin include:
On December 31, 2008, we held exploration rights to 62 blocks in the Santos Basin, comprising 36,259.54 km2 (9.0 million acres).