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Brazil makes major oil discovery

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Brazil makes major oil discovery

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Brazil’s state owned energy company Petrobras has made a significant find that could propel it into the world’s top ten producers. It says tests show that the Tupi Sul field offshore of Rio de Janeiro may hold as much as eight billion barrels of crude oil and natural-gas reserves.

Dilma Roussef of the Brazilian president’s office said: “This finding by Petrobras alone, is between four and eight billion barrels. So taking the average of around six billion barrels that would mean this discovery is almost 40% of everything that has been discovered up till now in Brazil.”

Another bonus for Brazil, the oil in this field is a light grade, that is easier to refine and therefore sells for more, compared with most of the country’s output which is heavy crude. Galp Energia, Portugal’s biggest energy firm and British Gas are partners in the field with Petrobras. Galp owns 10% and BG 25%. Shares of Petrobras, Galp and British Gas all jumped on news of the discovery.