Petrobras Delays Gulf Project

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Petrobras, Brazil's state-run oil producer, said on Thursday it will delay oil product at its Cascade-Chinook deep-water project in the Gulf of Mexico until the end of this year due to issues pertaining to the subsea system that is to be used for the project.

Petrobras (PBR) had originally planned to start producing at Cascade-Chinook last year, but that plan was hampered by the deep-water drilling moratorium imposed federal regulators following the Gulf of Mexico oil spill in April 2010.

In March, the U.S. Department of the Interior authorized Petrobras to use a floating production vessel at the development, the Wall Street Journal reported. According to the department, production was scheduled to start soon, but the company ran into a setback in April when some equipment failed, the Journal noted.

Cascade-Chinook is located 165 miles off the coast of Louisiana and Petrobras plans to drill at depths of 8,000 feet.