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Amazon find boosts Brazil gas, power sectors

April 12, 1999

Development of gas reserves in Brazil's Amazon region has received a major boost with the discovery of a significant gas field in a new area much closer to potential markets. Petroleo Brasileiro SA noted that its latest discovery of natural gas in the Amazon basin is located only 200 km east of Manaus, the capital of Ama- zonas state, which underscores its strategic importance. The Urucu pro- vince, the other gas-producing region in the Amazon, is 600 km from Manaus.

Development of gas reserves in Brazil's Amazon region has received a major boost with the discovery of a significant gas field in a new area much closer to potential markets.

Petroleo Brasileiro SA noted that its latest discovery of natural gas in the Amazon basin is located only 200 km east of Manaus, the capital of Ama- zonas state, which underscores its strategic importance. The Urucu pro- vince, the other gas-producing region in the Amazon, is 600 km from Manaus.

The discovery boosts Brazil's plans for establishing a series of natural gas-fired power plants in Brazil's northern and northeastern states. Its proximity to Manaus bolsters the viability of plans to build a thermoelectric power plant at Manaus.

The main market for Amazon natural gas is the electricity sector, particularly in the northern and northeastern regions. In Amazonas state, there are studies under way for two 220-MW thermoelectric power plants, and in Rondonia state, a third of 220 MW capacity. There are also plans for building two gas-fired thermoelectric power plants at the port cities of Pecem in Ceara state and Suape in Pernambuco state.

Amazon strike

The discovery was confirmed with production tests of the 1-RUT-1-AM exploratory well, located near Rio Uatuma, 250 km south of Balbina city. According to Celso Lucchesi, Petrobras exploration and production superintendent, the well encountered a pay zone 12 m thick at a depth of 1,150 m in Nova Olindea sandstones. Tests indicated a calculated absolute open flow rate of 24.5 MMcfd of gas, with a small volume of condensate.

The prospect area, covering about 20 square km, may contain natural gas in place of about 280 bcf, which represents recoverable volumes of about 210 bcf of gas.

By comparison, Urucu has around 50 wells that produce 35,500 b/d of crude oil and 63 MMcfd of natural gas. Petrobras's target is to achieve 77 MMcfd by yearend at Urucu, which has been producing oil and gas since 1986. Brazil's natural gas reserves total about 15 tcf.