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Petrobras might quickly move drill rig out of Equatorial Margin

Brazil's staterun oil firm Petrobras might quickly move a drilling rig out of the Potiguar Basin due to absence of permits for more wells, Chief Exploration and Production Officer Joelson Mendes stated on Wednesday.

Petrobras has drilled one well at Potiguar, and remains in the procedure of drilling a second one, however lacks ecological permits to drill more, said Mendes on the sidelines of the CERAWeek energy conference.

In January, Petrobras confirmed it had actually discovered hydrocarbons in its first Equatorial Margin well, Pitu Oeste, however stated its financial practicality was undetermined.

The potential of the second well still needs to be examined, said Mendes.

We will be finishing this well and perhaps we will take the rig to the southeast of the country, to Campos and Santos Basin, he informed , including that the rig is costly therefore it can not stay idle while waiting on new authorizations.

Potiguar lies in the so-called Equatorial Margin, an extensive area in northern Brazil that is seen as the most appealing frontier for oil and gas exploration for Petrobras.

Petrobras prepares to drill 16 wells in the Equatorial Margin in 5 years, said Mendes, but Brazilian environmental regulator Ibama, whose employees are striking, has been slow to provide new authorizations, postponing expedition jobs.

(source: Reuters)