Brazilian state-controlled oil company Petroleo Brasileiro (PBR - Analyst Report) announced the discovery of a new light oil accumulation in the Campos Basin off the Brazil's southeastern coast, following a string of major offshore finds. As per the company, this new find, named Brava, holds an estimated 380 million barrels of recoverable oil equivalent, which is equal to 2.6% of the company’s proven reserves. The discovery was made at a depth of 4,460 meters at the Marlim field, which is situated 170 kilometers (105 miles) off the coast of Macae, a city in Rio de Janeiro state.
Petrobras has discovered billions of barrels of oil in offshore reserves in the past two years and more recently made a successful discovery of two other oil deposits in the Campos Basin, where most of the Brazilian crude production takes place. The company also plans to continue to perform more tests to evaluate the productivity of the reservoirs.
Petrobras projected investments in the range of $200 to $220 billion for the four-year period 2010 – 2014, mainly to develop new oil fields. The company targets to reach daily production level of 5.7 million barrels a day by 2020 (up from the production of 2.5 million barrels a day in 2009), based on developments of fields in deep waters of the Atlantic Ocean.
Petrobras, a global leader in deepwater oil exploration and production, dominates Brazil’s oil and gas sector. It produces substantially all of Brazil’s crude oil and natural gas, accounts for almost all of the country’s refining capacity, is building the country’s natural gas infrastructure and enjoys premium market share positions in the petroleum product and liquefied petroleum gas (LPG) marketing businesses. While the company no longer operates as a legal monopoly, the size and reach of its operations make it a quasi-monopoly in Brazil.