Petrobras Makes Deepwater Discovery

Petrobras has made an important deepwater oil discovery in the Submarina Basin off the coast of Espirito Santo state.

Petrobras said it would announce the estimated size of the field after further study of the well (1-ESS-123). The discovery in approximately 1,374 meters of water and is located about 35 miles from the Espirito Santo coast.

"The well is situated in the BES-100 block, one of the areas that would have had to be given back on August 6 if no discoveries were made," the company said.

Petrobras will relinquish several blocks of Brazil's national oil and gas reserves, to which it currently has exclusive explorations rights, to the National Petroleum Agency on August 6th.

The regulatory agency will in turn put them up for auction in the next "Oil Round" for international companies interested in exploration and production of Brazil's reserves. This discovery is the latest in a series of recent large finds off the coast of Espirito Santo.