Premier Targets 3 Billion Barrels of Oil Expanding Into Brazil

Premier Oil Plc (PMO), an energy explorer operating from the U.K. to Southeast Asia, is targeting as much as 3 billion barrels of oil resources after acquiring exploration blocks in Brazil for the first time.

The company and its partners won 5-year exploration licenses for three blocks off northeast Brazil, Premier said today in a statement. It will invest about $150 million in seismic studies and exploration wells as well as a signature bonus.

“It’s a new country for Premier,” said Andrew Lodge, exploration director at the London-based company. “We are trying to replenish our portfolio and bring more impact to it.”

Premier is reversing a series of unsuccessful exploration wells in 2012, having reported four new oil and gas discoveries this year, including the largest find, Luno II in Norway. The company expects to pump as much as 70,000 barrels of oil equivalent a day in 2013 after ramping up production at the Huntington oilfield in the North Sea.

QGOG Constellation SA and Pacific Rubiales Energy Corp. (PRE) are Premier’s partners in Block 90 in the Foz do Amazonas Basin, while International Petroleum Investment Co’s Cia. Espanola de Petroleos SA is the partner in the Blocks 665 and 717 in the Ceara Basin. Each block may contain 250 million barrels to 1 billion barrels of oil.

Premier expects to produce as much as 60,000 barrels of oil equivalent a day in the first half of the year, it said today in a separate statement.

To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.