November 3, 2010 / 3:49 PM / in 7 years

Brazil Petrobras questions BG oil reserve estimate

* Petrobras says BG should wait for completion of wells

* Reiterates reserve estimates for Tupi area

RIO DE JANEIRO, Nov 3 (Reuters) - Brazilian state oil company Petrobras (PBR.N) on Wednesday questioned British gas producer BG Group’s BG.L move to boost its oil reserve estimates for discoveries in Brazil, saying the company should await the completion of wells being drilled there.

BG on Tuesday lifted estimates for total recoverable resources from the Tupi, Iracema and Guara areas in Brazil by 34 percent, raising BG’s net resources from those areas to 2.8 billion barrels of oil equivalent (boe).

“Petrobras believes it is important to wait for the conclusion of the drilling in the Tupi (area) to provide additional information on recoverable volumes,” the company said in a statement.

It added that BG’s announcement “does not represent a statement by the consortium responsible for the operation of the blocks.”

The Brazilian firm is the operator of the BM-S-11 and BM-S-9 blocks, which are located in deep waters off Brazil’s coast and include the areas in question.

It reiterated its estimates of 5 billion to 8 billion barrels for Tupi and Iracema in BM-S-11 and 1.1 billion to 2 billion barrels in Guara in BM-S-9.

Petrobras has a 65 percent stake in BS-M-11 with BG holding 25 percent and Portugal’s GALP (GALP.LS) holding 10 percent.

Earlier this year the firm had a similar reaction to reserve estimates released by Spain’s Repsol (REP.MC) for the BM-S-9 block. [ID:nN0498975]

Petrobras has a 45 percent stake in that block, while BG holds a 30 percent stake and Repsol has a 25 percent stake.

Reporting by Brian Ellsworth; Editing by Lisa Shumaker

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