Brazil's state-owned oil and gas giant Petrobras on Tuesday announced the discovery of a light oil well located in deep waters in the Santos Basin, about 250 km from the southern coast of the city of Rio de Janeiro.

A consortium comprised of Petrobras, with a 65-percent stake, Britain's BG group PLC with 25 percent and Portugal's Petrogal with 10 percent is responsible for the well discovery.

At a press conference following the closing of the Sao Paulo Stock Exchange (Bovespa) on Tuesday, where Petrobras' shares are traded, the company labeled the finding as a landmark in Brazil's oil and gas history, as the consortium had to perforate a salt layer over 2,000 meters thick to reach the oil. The well is 2,140 meters deep.

"The discovery of this new deposit represents a historic mark for Brazilian exploration," Petrobras said.

The company will continue its analysis to measure the volume and productivity of the new well, Petrobras said.

In its recently announced business plan for 2007-2011, Petrobras stated its intentions to raise its investment in light oil prospecting and to double light oil production in the country.

Currently light oil only represents 11 percent of Petrobras' total oil production. Brazil announced that it would become self-sufficient in oil this year, but since its production is mostly comprised of heavy oil, Brazil has to import light oil from other countries.

(Published Peoples Daily Online, July 12, 2006)
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