Spanish energy giant Repsol consortium discover more oil off Brazilian coast

A consortium led by Spanish energy consortium Repsol, together with its Chinese partner Sinopec, UK's BG Group and Brazil's Petrobras yesterday announced that it has discovered a new deposit of ''good quality'' crude oil off Brazil's Atlantic coast.

Repsol Sinopec Brazil and its partners Petrobras and BG Group have announced a new oil discovery in the Carioca area, located in block BM-S-9, which confirms the potential in the Brazilian pre-salt Santos Basin area.

The discovery was made in a well, known as AbarÃ, and is located 35km south of the Carioca discovery well and 293km off the São Paulo coast.

Repsol and its Chinese partner Sinopec have a 25-per cent stake in the consortium while Petrobras, the operator, holds 45 per cent and the remaining 30 per cent is held by BG Group.

Initial tests have shown the existence of a good quality oil at a depth of 4,830 meters where the consortium plans further tests at the Carioca Northeast well, discovered last January by Repsol and the consortium.

The results obtained so far indicate a production potential of over 28,000 barrels per day, revealing higher than initial production expectations. Currently, the well produces a restricted flow rate of 23,400 barrels per day as required by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP).

In addition to the discovery in AbarÃ, four wells have been drilled and two more tests have been carried out in accordance with ANP Carioca Assessment Plan commitments.