Petrobras announces new findings off Brazil coast

May 23rd, 2008 - 6:48 pm ICT by admin  

Rio de Janeiro, May 23 (IANS) Brazil’s state-run energy major Petrobras has announced it found new off-shore oil reserves in the Santos basin off the Sao Paulo coast close to a spot where last year it found large potential reserves. The company said the new field was found in block BM-S-8, which it operates as part of a consortium with Royal Dutch Shell and Portugal’s Galp Energia, EFE news agency reported Friday.

Petrobras holds a 66 percent stake in the consortium, while Shell and Galp have respectively 20 percent and 14 percent shares.

“The consortium has proved the presence of oil in pre-salt reservoirs,” Petrobras said, adding that “preliminary analyses indicate oil gravity is … comparable to that of the other pre-salt oils found in the Santos Basin”.

Petrobras said the pioneer well was located about 250 km off Sao Paulo state’s coast.

“Drilling was completed May 18, at a depth of 6,773 metres and the discovery was proved via an oil sampling by means of a formation test in reservoirs situated at a depth of nearly 6,000 metres,” Petrobras said.

The Brazilian oil company, however, did not provide an estimate of the field’s potential reserves.

Tests showed that the field contains light crude oil, which trades at a higher price than the medium and heavy petroleum pumped from many of Brazil’s other fields.

The consortium is preparing an assessment of the new field that will be submitted to the ANP, Brazil’s energy industry regulatory agency, so that investment in the project can continue, Petrobras said.

In late 2007, Petrobras announced it had found what could be the world’s largest oil field, called Tupi, in the Santos basin.

Tupi could contain between five billion and eight billion barrels of crude oil, or enough to increase Brazil’s current total proven petroleum reserves by up to 50 percent.

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