With as much as 12 billion barrels of recoverable oil in the pre-salt fields of Brazil, Petrobras (NYSE:PBR) is about to add a hefty amount of oil to its reserves. As the national oil company of Brazil, it has a government mandated 30% working interest in every well that will be drilled in this new region. This increase in reserves and production could come as a big relief for a company that for years has taken major losses in its refining business because of the high costs of oil imports and the artificially low gas prices that the government mandates.
But getting at the new reserves will not be easy. These offshore fields present some of the most technically challenging drilling environments out there today, and Petrobras could end up spending a lot of money without anything to show for it if the company isn't careful about its exploration program. Tune in to the video below where Fool.com contributor Tyler Crowe takes a look at what Petrobras needs to do to make this new oil field work, and highlights what companies would be in the best position to make that happen.
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