Kate Mackenzie As production falls, Repsol pins hopes on Brazil

Spain’s biggest energy company, Repsol, has published details of a big gas find in Brazil’s deepwater offshore Santos Basin.

Repsol last week announced profits down 57.4 per cent for the first quarter of 2009, compared to a year earlier. Its production also fell 5 per cent, substantially worse than some of its supermajor rivals – BP’s for example rose 2 per cent. Total, however, also reported a 4.3 per cent fall in production last week.

Total is seeking to make up some of the shortfall in Nigeria while Repsol is looking towards Brazil, where it has stakes in some of the country’s rich deepwater fields.

Repsol today revealed some details of the Panoramix well, in a field in which it has a 40 per cent stake. Panoramix has maximum gas flows of 378,600 cubic metres per day and maximum flows of 1,570 barrels of condensate.

The numbers sound good but a Citigroup note pointed out that there was no mention of whether the flows are unrestricted, or of the extent of recoverable reserves.

Repsol announced several discoveries in Brazil’s waters in the first quarter, including one well called Piracuca which it says has an estimated 550m barrels of oil equivalent.