Brazil's state-controlled oil company Petrobras announced last week it had struck good-quality light oil in the Solimoes Basin, in the state of Amazonas.
The company said in a market filing that the find had the capacity to produce 1,400 barrels of light weight, 41-degree API oil a day, as well as 45,000 cubic meters of natural gas. The well is onshore.
Petrobras is a 100% stakeholder in the SOL-T-171 concession block, in which the find occurred. It said if it confirmed commercial viability of the discovery, it would create a new oil and gas production centre in the Solimoes Basin.
The company now produces 53.000 barrels of oil, 11 million cubic meters of natural gas and 1.300 tonnes of liquid petroleum gas a day in the state of Amazonas.
Lesser known than the massive sub-salt deposits off the south-eastern coast of Brazil, the onshore Solimoes Basin has turned up attractive new finds.
Discoveries in the basin have been behind the rise of local onshore exploration start-up HRT in Brazil, a rarity where Petrobras still dominates the oil industry.
HRT agreed in October to sell a 45% stake in 21 Amazon oil blocks to Anglo-Russian TNK-BP for 1 billion dollars.
In related news the National Petroleum Agency, ANP, announced that Brazil’s oil and natural gas production was a record high in 2011.
Oil production totalled 768 million barrels last year, up 2.5% from 2010, while natural gas production reached 24 billion barrels of oil equivalent (BOE), up 4.9% from 2010.
In December, oil production reached 2.214 million bpdand natural gas production reached 2.663 million BOE per day, both record-high figures.
From 2002 to 2011 Brazil's oil production increased 45%, while natural gas production rose 55%. A total of 91.2% of Brazil's natural gas and oil production came from fields operated by Petrobras.
The Campos Basin, off Brazil's south-eastern coast, was responsible for 83.4% of oil production and 38% of natural gas last year.