Petrobras Makes Discovery in the Amazon

Petrobras said tests showed recoverable natural gas reserves at a field in northern Amazonas state were around 6 billion cubic meters. The company said that a new well, the 3-RUT-2-AM in the Itapiranga area, approximately 125 miles northeast of the city of Manaus, had a daily production capacity of around 370,000 cubic meters of natural gas and 200 barrels of gas condensate. Petrobras drilled the first well in the area in 1999, when it found signs of gas, and the recent tests demonstrated the extent of the deposit.

The discovery is important for the region, as it can provide local industry and eventual new power plants with gas. Brazil, which has relatively small recoverable reserves of 223 billion cubic meters of natural gas and produces around 42 million cubic meters per day, buys most of the natural gas it consumes from neighboring Bolivia and Argentina.