November 28, 2014 / 8:59 PM / 6 years ago

Brazil's oil agency says subsalt fields viable at $60 a barrel

RIO DE JANEIRO, Nov 28 (Reuters) - Projects in Brazil’s offshore subsalt oil fields, which are trapped by a layer of salt far beneath the seabed, are viable at the current oil price and could survive a further fall, the president of the country’s oil regulator, ANP, said on Friday.

“There is no project in the subsalt that I know of that cannot resist $72 (a barrel)... or even $60,” Magda Chambriard told reporters after an event in Rio de Janeiro.

“The price can fall, there is still a fair bit of room for it to fall,” she added.

Brent crude closed on Friday at $70.15 per barrel, after the OPEC group of oil exporting countries opted on Thursday to keep production at current levels despite a dramatic fall in oil price in the past few months.

The subsalt region off the coast of Rio de Janeiro is home to giant new offshore oil discoveries. There are a number of projects in operation, but the complexity and high cost of getting these subsea fields up and running has raised some concerns about how viable they might be at lower oil prices. (Reporting by Marta Nogueira, writing by Stephen Eisenhammer; Editing by Peter Galloway)

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