Eni, Vale Spy Traces of Natural Gas in Offshore Santos Basin

The Brazilian unit of Italy's Eni SpA and its partner Vale notified the National Petroleum Agency (ANP) late Friday that traces of natural gas were encountered at an offshore block of Brazil's Santos Basin.

Drilled by Diamond Offshore's Ocean Quest semisub to a target depth of 6,080 meters, the 3ENI8RJS exploratory well is located in the BM-S-4 block and is operated by Eni Oil do Brasil S.A. with a 50% interest, while the remaining 50% interest is held by Vale.

In late July, Eni and Vale notified the ANP of a previous find in the same well. Oil companies operating in Brazil must disclose any oil, gas or hydrocarbon find to the Brazilian government's oil and gas arm within 48 hours; however, the disclosures do not indicate commercial viability.

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