Petrobras Finds US$10bn Reserves at Santos

Brazil's state oil company Petrobras has found an estimated 600-700 million barrels of light crude oil, valued at US$10bn, at its 1-RJS-539 Santos Basin well, Brazil's President Fernando Henrique Cardoso, energy minister Rodolpho Tourinho and Petrobras directors announced yesterday. Petrobras discovered the reserves at depths of between 3,828m and 4,148m, 165km off the coast of Rio de Janeiro. Production could begin within the next 18 months or two years, Petrobras exploration director Jose Coutinho Barbosa said, without disclosing output estimates for the field. This is the Santos Basin's first major discovery. Approximately 75% of the country's oil production, which exceeds 1.1 million bpd, comes from the Campos Basin also offshore Rio state.