Wednesday, September 7, 2011

Oil Extraction in The Amazon Rainforest: HRT Expects Daily Production Of 50,000 Barrels Of Oil in The Solimões Basin by 2014

09/07/2011
Source: Forbes

The president of HRT, Marcio Mello, said in an interview with Rio Bravo Investimentos that he will, in September, announce oil discovery in the Solimões Basin, the first oil extraction by a private company in the Amazon rainforest.

“We will soon announce findings in Amazon Rainforest,” Marcio Mello affirmed. HRT expects daily production of 47,000 barrels of oil in the Solimões Basin by 2014. HRT has over one thousand employees in the region working round-the-clock shifts to dig exploratory oil wells and overcome infrastructure challenges.

According to Mello, the Solimões Basin, in Amazon, and the coast of Namibia, in Africa, are two places “where people with little money can find giant oil fields.” HRT affirms that about 540 million of boe (barrels of oil equivalent) can be found in the Solimões Basin. Boe is the amount of energy contained in a barrel of crude oil. Approximately 6,000 cubic feet of natural gas is considered equivalent to one barrel of oil. Boe allows output of oil, measured in barrels, and gas, measured by its volume, to be added together to form one figure and measures production volumes rather than values. (Further explanation about boe can be found here).

HRT will have 13 rigs in Amazon by April 2012. To emphasize the relevance of this investment Mello mentions that Petrobras has never had more than two rigs at the same time in the region. Petrobras, Brazilian state-owned giant oil company, is the only company that has already extracted oil in the Amazon. (More about Petrobas here: Will Petrobras Become The World’s Largest Company? Brazilian Giant’s Q2 Profits Jump 32%).

Former employees of Petrobras founded HRT in 2008. Today, the company holds 7.9 billion boe. Global Resources Fund, a mutual fund based in Texas, is known for having large stakes in the company.
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