run oil company says it has spent $1 billion on exploratory oil wells since 2005 in an offshore area that could hold as much as 55 billion barrels of crude. Petroleo Brasileiro SA executive Antonio Carlos Pinto says the cost of drilling in the ultra-deep area off Rio de Janeiro's coast has dropped significantly since test drilling began. Pinto said Friday that large-scale production in the area is expected to begin in 2012. A prominent Brazilian geologist said earlier this week that the area could hold as much as 55 billion barrels. Petrobras has declined to issue estimates. But government officials say development of the area could turn Brazil into a major oil exporter. Photo shows a general view shows the P-51 oil rig of Brazilian oil giant Petrobras at Angra dos reis in Rio de Janeiro taken on Thursday. The platform, the first semi-submersible (floating production unit) to be built entirely in Brazil with a total investment of $850 million, will be able to process and treat 180,000 barrels of oil and 6,000,000 cubic meters of gas.
