May 21 (Bloomberg) -- Petroleo Brasileiro SA, Brazil's state-controlled oil company, said it struck oil in the BM-S-8 block of the coast of Sao Paulo state.
Petrobras, in a joint venture with Royal Dutch Shell Plc and Galp Energia SGPS SA, found reserves in well drilled through the seabed and a layer of salt beneath seas 2.1 kilometers (1.3 miles) deep, according to a statement posted on the Brazilian securities regulator's Web site.
``The potential for the area is great and this well helps to show the whole pre-salt region has a great future,'' said Lucas Brendler, analyst at Geracao Futuro Investimentos SA, a Porto Alegre, Brazil-based investment bank which manages 7.6 billion reais ($4.6 billion) of stocks, including about of 1.3 billion reais of Petrobras, its largest holding. ``Still, this is only incremental data, and we'll need more news, more facts, to have a better idea of the actual size of the deposit.''
Petrobras will need to drill a second well in the Santos basin area, about 250 kilometers south of Rio de Janeiro, before the company can get a full idea of the size of the field.
As of May 14, Petrobras's well had drilled through 6,975 meters of ocean floor, according to Brazil's petroleum regulator, known as ANP.
Thursday, May 22, 2008
Petrobras Strikes Oil (Again)
Petrobras, which recently passed GE in market cap to become the world's 5th largest company and plans to order 40 ultra-deepwater rigs at a cost of $30 billion, struck oil again the other day: Petrobras, Shell, Galp Find Oil in Pre-Salt Block.