Coastal Corp. has signed joint operating agreements with Petroleo Brasileiro SA and other partners to begin exploration of two blocks in the Camamu basin off Brazil`s Bahia state.
Coastal units Coastal BAS-97 Ltd. and Coastal BCAM-2 Ltd. will serve as operator of, respectively, Blocks BAS-97 and BCAM-2 (see map). Interests in both blocks will be: Coastal and Petrobras, 40% each; Unocal Camamu Ltda., 10%; and Cia. Brasileira de Petroleo Ipiranga, 10%.
The blocks were allotted to Petrobras by Brazil`s National Petroleum Agency under the country`s fledgling privatization program (OGJ, Jan. 25, 1999, p. 38). Petrobras is to develop these blocks jointly with private firms.
The BAS-97 and BCAM-2 blocks cover a total of 135,120 acres in 60-6,500 ft of water.
The 3-year contracts further a participation agreement signed in October 1998.
The contracts call for the drilling of one well on each block and development of BAS-97 field, if it is found to be economically feasible.
The first well, planned 1.8 miles from the coast in about 65 ft of water, is to be drilled later this year on Block BAS-97.
The well will appraise the BAS-97 discovery, made by Petrobras, and will test a deeper formation.
Pending this well`s outcome, Coastal will begin full-field development in 2000.
Coastal also plans to drill an exploration well in about 330 ft of water on neighboring BCAM-2 block.
