Brazil Finds Oil in New Exploratory Frontier Off Northeast Coast

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Petrobras's Gurupá oil ship Brazilian state-controlled oil multinational Petrobras and Norwegian company StatoilHydro announced this Tuesday, November 25, that traces of oil were found in an exploratory well in Lua Nova area, in Jequitinhonha Basin, off the coast of the state of Bahia.

The well is operated by the Brazilian company, which has 60% participation, and by StatoilHydro, which has the remaining 40%.

"The presence of oil was confirmed in arenite areas of the late cretaceous period. Further drilling and analysis should take place to determine whether the discovery has a positive economic potential," according to a press statement. "The well should be drilled to greater depths, according to the exploration program," says the text.

This was the first well drilled in deep waters in Jequitinhonha Basin, at a water depth of 2,300 meters. The block is located 74 kilometers off the coast of Bahia, at a water depth of 2,354 meters, with reservoirs situated at approximately 3,630 meters from the bottom of the sea.

Petrobras also added that the extension of the reserves and their economic viability should be evaluated later in the Assessment Plan (AP) to be proposed to the National Petroleum, Natural Gas and Biofuel Agency (ANP).

The find was notified to the ANP following the standard procedure when oil is found in the country.

This is a region of a new exploratory frontier for Brazil and it has been classified as priority by Petrobras, which even transferred equipment from the pre-salt layers to Jequitinhonha Basin. The block, BM-J-3, where Lua Nova may be found, was granted for exploration in 2002 during the fourth round of tendering promoted by the ANP.

StatoilHydro, the Petrobras partner in the project, is responsible for almost all oil production in Norway. The company is responsible for 1.5 million barrels of oil equivalent a day, but it also operates in countries like Angola, Venezuela, Azerbaijan and Algeria.

Anba

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