Brazil’s state-run oil company Petroleo Brasileiro SA has started to produce oil and natural gas from its Cottonwood field off U.S. shores in the Gulf of Mexico, the company said Monday.

Petrobras connected a first production well with an initial daily output of 4,000 barrels of light oil and 1.1 million cubic meters (39 million cubic feet) of gas, it said in a statement.

Petrobras said it will connect a second well this month, boosting gas output to 2 million cubic meters (70 million cubic feet) a day, and overall oil and gas production to 20,000 barrels of oil equivalent, or BOE, a day.

With that, the company’s overall production in the United States will reach 25,000 BOE a day by the end of February, Petrobras said.

Cottonwood is the first overseas deep-water field where Petrobras has started producing as an operator.

The company said last year that it expects to produce 100,000 barrels of oil a day in the United States in 2011.

source news : biz.yahoo.com

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