MercoPress. South Atlantic News Agency

Brazil discovers light crude in Santos basin

Petrobras and partners British Gas and Petrogal from Portugal have found light crude in the ultra-deepwater BM-S-11 block in the Santos basin, announced this week the Brazilian Energy company.

The official release describes the preliminary results as "very important" as the drilling is taking place in a "new frontier". However additional investment is needed for the correct assessment of the deposit's potential reserves.

The oil was found in the 1-BRSA-396A-RJS well Petrobras is drilling with its partners at water depths of 2,140 meters. The well is 250 kilometres south offshore Rio de Janeiro and distant 280 kilometres from the refinery Duque de Caxias, one of Brazil's largest.

Petrobras said the well's structure and the 2,000-meter salt mattress the drill had to go through represent a breakthrough in Brazilian oil exploration, "a historic landmark".

Petrobras and its partners in 2000 secured the BM-S-11 exploration concession license from hydrocarbons regulator ANP. Petrobras is the block's operator with 65%, Britain's BG Group has 25% and Portugal's state oil company Petrogal 10%.

The discovery of light oil in the Santos basin is particularly important for Petrobras since it can be mixed with the heavier petroleum extracted from Brazil's main reserves in the Campos Basin off Rio do Janeiro. Besides light oil has greater commercial value and only represents 10% of Petrobras production.