Petrobras Makes Discovery in Santos Basin

Petrobras, operator of the consortium in block BS-3, in Santos Basin, completed the drilling of the pioneer well 1-SCS-10 in October 2001. Located 175 kilometers off the coast of Santa Catarina, in approximately 653 feet of water, the 1-SCS-10 indicated the presence of hydrocarbons in three distinct horizons, between depths of 4,761 and 5,126 meters. The well was abandoned due to mechanical problems.

In November, 2002, the drilling of a new well was completed, the 1- SCS-10-A, a twin of the original, destined to evaluate the horizons mentioned above. Evaluation tests are being performed and one of the horizons, the deepest one, was identified as containing light petroleum, at 43 degrees API, and the reservoir rock is very similar to other accumulations previously discovered in the area. The conclusion of the well evaluation will be accomplished in the next 20 days.

Partners in BS-3 are Petrobras (35%), Queiroz Galvão (30%), Coplex (27.5%), and Starfish S.A. (7.5%).