Alvopetro wants to expand its Brazil exploration portfolio

Canadian hydrocarbons company Alvopetro is looking to expand its exploration portfolio in Brazil, country manager Frederico Oliveira told BNamericas. 

The Calgary-based company sees potential in blocks close to the region where it already produces natural gas, in the Recôncavo basin.

The assets in question, however, have not been included in watchdog ANP's open acreage program. Oliveira believes that is due to environmental licensing problems involving blocks with potential for exploration and production of unconventional resources in the Recôncavo basin, which were auctioned off in the 12th bidding round in 2013. 

“We’ve already made a request to the agency for them to be placed [in the open acreage]. They are very interesting blocks, with great conventional [gas] potential,” said Oliveira. 

Meanwhile, Alvopetro is testing two wells in the Murucututu field, which could be twice the size of the Caburé field, where the company's current output comes from. 

“Our UPGN [natural gas processing unit] has the capacity to process 500,000m3/d. With the new field, we expect to double this production,” Oliveira said. 

Alvopetro currently has a long-term contract with Bahiagás, the natural gas distribution concessionaire for Bahia state. 

“With this contract and the infrastructure, we’re well positioned to unlock nearby exploration assets in the region,” added Oliveira.