Petrobras Spies Traces of Oil in BM-S-7 Block

Brazil's National Petroleum Agency was notified late Friday that Petrobras discovered traces of oil at a recently drilled well in the offshore Santos Basin.

Drilled by the Pride South Atlantic semisub and located in the BM-S-7 block, the 9BRSA741SPS reached a target depth of 4,625 meters and has tested positive for oil.

The BM-S-7 block already contains Petrobras and Repsol's Piracuca discovery, which is estimated to contain light oil and natural gas reserves of some 550 million barrels of oil equivalent and has been deemed commercially viable.

Petrobras retains a 63% stake in the BM-S-7 block; Repsol holds the remaining 37%.

According to the ANP, oil companies must inform the agency of any oil, natural gas or hydrocarbon find within 48 hours of the find. However, this disclosure does not confirm whether or not the find is commercially viable.