Norway-based Statoil ASA (STO) has made a high-impact discovery in the Pão de Açúcar prospect, offshore Brazil.
The find is located at Repsol Sinopec operated block BM-C-33 in the Campos Basin, around 195 kilometers offshore Rio de Janeiro State, and is drilled in 2,800 meters of water.
With a hydrocarbon column of 480 meters, the Pão de Açúcar well is considered to be the thickest among the ones discovered in Brazil so far. In a choked drill stem test, the Pão de Açúcar well flowed 5000 barrels per day of light oil and 28.5 million cubic feet per day of gas.
The high potential of block BM-C-33 is validated by the Pão de Açúcar discovey made by Statoil together with Repsol Sinopec and Petroleo Brasileiro (PBR) or Petrobras. This is the third find, following Seat and Gávea, in the block BM-C-33. The partnership now plans to access the development potential of Seat and Gávea.
High-impact prospects – as classified by Statoil – are those having gross resource potential in excess of 250 million barrels of oil equivalent (boe), or 100 million boe net to the company. According to sources, the discovery is considered to have a potential of more than 500 million barrels of oil equivalent.
The estimate is based on a comparison with Petrobras’ prior Albacora discovery in the same area, which had an oil column of 241 meters and recoverable resources of 350 million boe.
The Pão de Açúcar finding marks the sixth high-impact discovery by Statoil in the past one year. The other high-impact discoveries comprise the latest Zafarani find in Tanzania, Skrugard and Havis in the Barents Sea, Johan Sverdrup in the North Sea and Peregrino South off Brazil.
Repsol Sinopec, the operator has a 35% stake while Statoil holds a 35% interest and Petrobras has a 30% interest.
Statoil holds a Zacks #3 Rank, which is equivalent to a Hold rating for a period of one to three months. Longer term, we maintain our Neutral recommendation on the stock. The company faces competition from BP Plc (BP) and ExxonMobil Corporation (XOM).
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