Statoil Announces Espirito Santo Discovery

Statoil and Petrobras have struck oil on the Indra prospect in the Espirito Santo basin off the coast of Brazil.

Petrobras is operator for license BM-ES-32, where the discovery was made and where Statoil holds a 40% stake.

The exploration well was drilled at a depth of 2,130 meters and both oil and reservoir quality is good.

The reservoir thickness is approximately 70 meters and is of good quality. The preliminary analysis of the oil shows a density in the range between 25 and 30 degrees API.

"We are very pleased to have struck oil here and the result will have an important bearing on our decision regarding further exploration activity in this area," said Tim Dodson vice president, international exploration.

The Indra find was made by the semi-submersible rig Paul Wolfe. The location is situated 140 kilometers from land and some 400 kilometers north of the Peregrino field.

At the moment Statoil is also participating in exploratory drilling in the Campos basin on license BM-C-33, where Repsol is the operator.

Statoil is operator on the Peregrino field and will hold a 60% share once the 40% divestment to Sinochem has been approved by the Brazilian authorities. Peregrino is planned to come on stream in the latter half of the first quarter of 2011.

By next year Statoil plans to operate three exploration wells in Brazil, two in the Peregrino area in order to prove additional resources on the field, as well as an exploration well in the Camamu basin.