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06Apr09


Petrobras says Santos gas find commercially viable


Brazil's state-run oil giant Petrobras (PETR4.SA)(PBR.N) said on Monday that natural gas reservoirs found in January by a consortium with Spain's Repsol (REP.MC), are commercially viable.

The light oil and gas reservoirs were considered of "great importance" with a total volume "in situ" estimated at 88.5 million cubic meters -- about 550 million barrels of oil equivalent, Petrobras said in a statement.

The new field, known as Piracuca, is above the salt layer in the BM-S-7 block in the Santos Basin.

It is located off the coast of Sao Paulo state, about 200 kilometers from the city of Santos in a water depth of 200 meters.

Petrobras has a 63-percent stake in the consortium, with Repsol controlling the remainder. The discovery was confirmed on Jan. 26.

[Source: Reuters, Sao Paulo, 06Apr09]

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