SAO PAULO (AFX) - Petroleo Brasileiro Sa and Repsol YPF SA have signed a preliminary agreement to jointly develop the Mexilhao gas field in the Santos Basin, financial daily Valor Economico reported, without citing sources.
This is Brazil's largest gas field, the report said.
Valor noted that the most nationalistic faction within Petrobras is uneasy about the prospect of letting a foreign company participate in a field in which Petrobras has already invested 300 mln usd.
The agreement with Repsol would enable Petrobras to bring forward the field's production.
According to Valor, the two oil companies will share the investments required for the field's development and share the natural gas produced.
The exact size of stake to be held by Repsol will be determined after a meeting taking place today in Rio.
The Mexilhao gas field requires investments of up to 3 bln usd, Valor said.
jmp/jsa
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This is Brazil's largest gas field, the report said.
Valor noted that the most nationalistic faction within Petrobras is uneasy about the prospect of letting a foreign company participate in a field in which Petrobras has already invested 300 mln usd.
The agreement with Repsol would enable Petrobras to bring forward the field's production.
According to Valor, the two oil companies will share the investments required for the field's development and share the natural gas produced.
The exact size of stake to be held by Repsol will be determined after a meeting taking place today in Rio.
The Mexilhao gas field requires investments of up to 3 bln usd, Valor said.
jmp/jsa
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
© 2005 AFX News
