UPDATE 1-Brazil's Petrobras, BG, Repsol find oil in Santos basin

Mon Feb 25, 2013 9:02pm EST

BRASILIA Feb 25 (Reuters) - Brazil's state-led Petrobras , BG Group and Repsol have found good quality sub-salt crude in an exploration frontier of the Santos basin, Petrobras said on Monday.

The well 1-SPS-98 (1-BRSA-1063-SPS), known as Sagitário, is located west of the main discoveries that have been made so far in the sub-salt fields of the Santos basin and the first to be drilled in bloc BM-S-50, 194 km (120 miles) from the coast of Sao Paulo state, in waters 1,871 meters deep.

"The importance of this discovery is the fact that it is in a area that is an exploration frontier," Petrobras said in a statement.

The oil was found in reservoirs just below the salt layer, at a depth of 6,150 meters, the statement said. Drilling will continue to a depth of 6,950 meters to determine the floor of the reservoirs, it said.

Petrobras has a 60 percent stake in the concession, BG Group has 20 percent and Spain's Repsol has the remaining 20 percent.

Brazil's sub-salt area deep below the coastal waters is believed to contain as much as 100 billion barrels of oil, enough to supply all U.S. needs for 14 years.

Output from the sub-salt fields is expected to continue to expand to more than 6 million barrels a day by 2020, making Brazil one of the worlds' major oil producers.

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