Chevron gives green light to offshore Brazil project

U.S. oil major Chevron said Wednesday it has given a green light to develop its second offshore Brazil oil project.

Chevron's Brazilian unit plans to develop the Papa Terra heavy oil field in the Campos Basin. The company holds a 37.5% stake in Papa Terra, which is operated by Brazilian state-run energy giant Petrobras.

The announcement followed Chevron's successful launch of the Frade field last year. The company is quickly ramping up output at Frade, which pumped its first oil in June 2009.

Papa Terra holds recoverable reserves of 380 million barrels of crude oil. Development of the field is expected to run about $5.2 billion, with first oil expected in 2013, Chevron said.