STXNEWS LATAM-Petrobras, Galp expand Brazil offshore gas find

Wed Oct 10, 2012 11:22am EDT

Brazil's state-led oil company Petrobras and Portugal's Galp found natural gas in an extension well in the offshore Jupiter exploration block, Petrobras said in a Brazilian securities filing on Wednesday.

The discovery in the "Jupiter Nordeste" (Jupiter Northeast) well in the BM-S-24 block is the latest find in the area, which Petrobras in January 2008 said had gas reserves on the scale of petroleum resources in the Lula field. Lula has an estimated 8 billion barrels of oil and natural gas equivalent.

The latest gas and natural gas liquids discovery identified a 176 meter petroleum column in rock with "excellent" permeability and porosity, Petrobras said. The well was drilled in water 2,161 meters (7,090 feet) deep to a depth of 5,438 meters below the seabed. Drilling has not been completed.

Petrobras owns 80 percent of BM-S-24 and is the field operator. Galp owns 20 percent. China's Sinopec owns 30 percent of Galp's Brazilian assets, including the Jupiter area. BM-S-24 is 275 kilometers (171 miles) south of Rio de Janeiro.