Petrobras, Repsol YPF declare Piracuca find 'viable'

Brazil's Petrobras and partner Repsol YPF said a light oil and natural gas find in the Piracuca field off Brazil is commercially viable.

Apr 15th, 2009

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Apr. 15 -- Brazil's Petroleo Brasilerio SA (Petrobras) and partner Repsol YPF SA said a light oil and natural gas find in the Piracuca field off Brazil is commercially viable.

The partners said the find was made in reservoirs in the presalt layer on Block BM-S-7 in the Santos basin.

The companies presented a declaration of commercial viability to Brazil's energy regulatory agency, ANP, based on the "intense exploratory activity" the companies have carried out on the block, Petrobras said.

"With the new field, it will be possible to increase the potential for light oil and gas production in shallow waters," Petrobras said. Earlier, the Brazilian firm estimated that the field contained nearly 550 million boe.

Petrobras and Repsol YPF originally announced their discovery in January, saying that the find was made at a water depth of 214 m and a total depth of 3,970 m, above the region's subsalt layer.

"This discovery is of great importance because of the potential production of gas in shallow waters in the southern Santos basin," said Petrobras, which is operator of the block, with a 63% stake. Repsol YPF holds the remaining 37%.

Contact Eric Watkins at hippalus@yahoo.com.

More in Exploration & Development