Brazilian state-run integrated energy company Petróleo Brasileiro S.A. or Petrobras PBR recently discovered oil accumulated in the pre-salt layer of Campos Basin in the Marlim Sul field area offshore Brazil.
About the Discovery
This is the company's first commercial oil find in Marlim Sul's pre-salt layer. At a depth of 4,568 meters, Petrobras hit a new accumulation while drilling a well commonly known as Poraquê Alto, located 115 kilometers east of the state of Rio de Janeiro. The company verified the finding with the help of profile data, gas detector, formation testing by cable, and fluid samples. Per Petrobras' analysis, there is presence of good porosity and permeability features in the carbonate reservoirs along with oil at a depth of 4,420 meters. The company expects the oil reservoir to be 45 meters thick.
Aftermath of the Discovery
We would like investors to know that in the last few years, the company's production from the Campos Basin decreased consistently. Hence, the discovery will help Petrobras to increase the production level again in the region. The company expects more discoveries in the matured basin, aided by the production infrastructure that the company has already deployed.
The latest discovery will help Petrobras with its strategy of opening new exploratory frontiers and intensifying pre-salt development. The will commence from 2020. The company continues to focus on the pre-salt layer due to its lower lifting cost of less than $7 per barrel.
With this latest find, Petrobras joins the list of oil discoveries made by big companies like CoconoPhillips COP and Repsol SA REPYY . ConocoPhillips reported a huge oil discovery in Alaska in Jan 2017 and said that the company will split the working interest of the discovery with Anadarko Petroleum Corp. APC . In Mar 2017, Repsol also discovered oil onshore Alaska .
About the Company
Petrobras is the largest Latin American oil and gas integrated company. It is involved in the exploration, production, refining, retailing and transportation of petroleum and its byproducts, both domestically and internationally. The company, headquartered in Rio de Janeiro,dominates Brazil's oil and gas sector. It produces most of Brazil's crude oil and natural gas and accounts for almost the entire refining capacity of the country.
Petrobras has lost 22.3% of its value in the last six months compared with 13.3% loss of its industry .
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report Repsol SA (REPYY): Free Stock Analysis Report Anadarko Petroleum Corporation (APC): Free Stock Analysis Report ConocoPhillips (COP): Free Stock Analysis Report To read this article on Zacks.com click here.