UPDATE 2-Petrobras’ Lula, Cernambi fields hold 8.3 bln boe

* Massive Tupi field, now called Lula, holds 6.5 bln boe

* Cernambi field, also in the subsalt, has 1.8 bln boe

* Figure tops Petrobras’ previous estimates for reserves
(Adds analyst comments, details)

RIO DE JANEIRO, Dec 29 (BestGrowthStock) – Brazilian state oil
company Petrobras (PETR4.SA: )(PBR.N: ) said on Wednesday its
reserves will rise by 8.3 billion boe after two massive oil
fields in the deep-water offshore region known as the subsalt
were declared commercially viable.

Tupi, which was renamed the Lula field, holds 6.5 billion
barrels of oil equivalent, while Iracema, now called Cernambi
field, has 1.8 billion boe in recoverable reserves.

They are now being incorporated into Petrobras’ proven
reserves, which were reported at 14.865 billion boe at the end
of 2009, under the criteria of the Society of Petroleum
Engineers.

“The Lula field will be the first supergiant oil field in
Brazil (with recoverable volumes above 5 billion boe), while
the Cernambi field is among the top five giant fields in
Brazil,” Petrobras said in a statement.

Both fields are located in the BMS-11 block, in the Santos
basin, operated by Petrobras, which holds 65 percent of the
consortium. BG Group (BG.L: ) and Portugal’s Galp (GALP.LS: ) are
partners with 25 percent and 10 percent, respectively
.

The total figure topped Petrobras’ previous estimates for
the recoverable reserves in the Tupi area, of between 5 billion
and 8 billion boe. The first well in the region was drilled in
October 2006.

“It came above expectations as (Petrobras was) talking
about a volume of up to 8 billion (boe),” Monica Araujo, an
analyst at Ativa brokerage, said, adding however that she
expects a small volume to be added to Petrobras’ reserves in
2010.

Petrobras will report by Jan. 15 its total reserves in
2010. Other fields that were declared commercially viable
during the year, smaller than Lula and Cernambi, are expected
to be included.

Shares of Petrobras rose on Wednesday despite a drop in oil
prices. Preferred Petrobras shares, the company’s most widely
traded stock, added 1.2 percent to 26.98 reais on the Sao Paulo
Stock Exchange in early afternoon trade.

The company said the final report on the evaluation plan
and the Development Plan for the Lula and Cernambi fields were
also submitted to Brazil’s oil regulator ANP together with the
declaration of commerciality.
(Reporting by Denise Luna and Inae Riveras; Editing by Walter
Bagley)

UPDATE 2-Petrobras’ Lula, Cernambi fields hold 8.3 bln boe