Repsol Sinopec with partners, Petrobras of Brazil and UK-based BG Group, discovered high quality crude in ultra-deep waters in the Santos Basin in Brazil’s pre-salt play.
The discovery was made in the Carioca Northeast well in block BM-S-9, approximately 275 kilometres (171 miles) from Sao Paulo. The new well is in the Carioca area in water 2,151 metres (7,057 feet) deep. Initial testing has indicated the existence of a reservoir 200 metres thick, containing 26º API grade oil.
The discovering consortium is formed by Repsol Sinopec (25%), Petrobras as operator and owner of a 45% interest, and BG Group (30%).
In the BM-S-9 block, the company has made some of the world’s most significant discoveries, such as Guara, Iguazu and Abare East. The block includes the Guara and Carioca exploratory areas, where the latest discovery was made.
Guara and Carioca are two major areas that Repsol considers key growth areas to boost new projects.
The consortium will continue with the planned investments set out in the discovery evaluation plan presented to Brazil’s National Oil Agency (ANP) in 2007 to confirm the size and quality of the discovery and to continue the activity in the pre-salt Santos Basin.
Repsol has a significant and diversified projects portfolio in Brazil, including a producing field (Albacora Leste) a block under development (BM-S-7: Piracuca BA), two planned pilot projects (BM-S-9: Guara and Carioca) and fourteen exploration blocks of great potential.
At the end of last year, Repsol and China’s Sinopec entered into an agreement to jointly develop the exploration and production projects in Brazil, creating one of Latin America’s largest energy companies, valued at $17.773 billion. Repsol has a 60% stake in the company and Sinopec owns the remaining 40%.
Brazil’s offshore boasts one of the world’s fastest-growing oil and gas reserves. The deal highlights the enormous international interest in this historic moment for Brazil, and particularly for the Santos Basin pre-salt activity led by Petrobras.