July 10 (Bloomberg) -- Chevron Corp. may delay the development of a Brazilian offshore field to 2011 from 2010 because the cost of equipment and services has not fallen in line with oil prices, Valor Economico newspaper said.

The Papa Terra field is 37.5 percent owned by San Ramon, California-based Chevron, operated by Petroleo Brasileiro SA, Brazil’s state-controlled oil company, Valor said today, citing Ali Moshiri, head of exploration and production for Chevron in Latin America and Africa. The field is expected to have first oil output in 2012, he said.

“We are waiting for a final decision on 2010 investments,” Moshiri told Valor. “It will depend a lot on the type of offer we receive from the engineering companies and the builders of floating platforms. If the offers are too high, there’s a good possibility Petrobras and we will resolve to delay to project.”

To contact the reporter on this story: Jeb Blount in Rio de Janeiro at jblount@bloomberg.net

Last Updated: July 10, 2009 09:50 EDT