U.S. firm Devon Energy Corporation announced on Friday it has launched operations in Brazil's first oil and gas field.
Devon acquired a block in the Campos Basin, on Brazil's southeastern coast, in a bid invited by the government's National Oil and Gas Agency (ANP) in 2000. The field was discovered in 2004, and operations started less than a month ago, the U.S. company revealed.
Devon expects production to reach its maximum capacity, estimated at50,000 barrels per day, by 2008. Operations began with a well capable of producing 5,000 barrels per day, and another well was to be begin production this week.
By the end of 2007, the company said it expects the field's total production to reach 20,000 barrels a day. The oil field is believed to hold total resources of over 50 million barrels of oil.
The oil and gas company said it has invested 400 million U.S. dollars in the project.
Devon holds a 60-percent stake in the field, as well as operator status, while South Korea's SK Corporation holds the other 40 percent.
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