On Friday, President Luiz Inácio Lula da Silva will be on an oil platform off the Brazilian coast to formally kick-off the start of subsalt oil production from the Tupi field. This marks an important milestone for Brazilian extraction of deep-water oil deposits off the coast of Rio de Janeiro and São Paulo states. Discovered in 2007, the Tupi oil field is estimated to have five to eight billion barrels of oil, and is part of a broader oil find in the Santos Basin that could contain between 50 and 80 billion barrels.
Petroleo Brasileiro, the state-run energy company, announced on Tuesday that it is “comfortable” beginning production at its pre-salt oil fields despite the decreasing cost of oil. A company representative confirmed that the extraction and production can be profitable at a price as low as $35 to $40 per barrel.