Petroleo Brasileiro SA has announced an important oil discovery on Block BS-500 in the Santos Basin off Brazil. The field is in the northeast of the basin, about 165 km southwest of Rio de Janeiro.
The well encountered 35° gravity oil in two zones at 3,828-34 m and 4,092-4,148 m. Petrobras is drilling a second wildcat, 1-RJS-542, 25 km west of the discovery well in 1,490 m of water.
Brazil's President Fernando Henrique Cardoso, Mines and Energy Minister Rodolpho Tourinho, and Petrobras Pres. Henri Phillippe Reichstul heralded the significance of the discovery, claiming that preliminary estimates indicate potential oil reserves of 600-700 million bbl.
Santos basin is Brazil's primary gas producing region. Therefore, the discovery of this oil field shows that Santos Basin has now become an important oil province, says Tourinho.
President Cardoso said the discovery represents significant future revenues for Brazil: "The Santos discovery shows that competition is positive for the country. I've never doubted Petrobras's ability to compete." Petrobras has begun opening its oil fields to private investments, although the state oil firm was alone in this discovery.
Tourinho said that the oil is of excellent quality-lighter than the oil from Campos basin-and that Petrobras expects production to begin within 2 years, although 4-5 years will be required to develop large-scale commercial production.
Reichstul says the field is Petrobras's most important discovery since 1996, when the Roncador field was discovered in Campos basin off Rio de Janeiro state.
