Videocon-BPCL strike oil off Brazilian coast

Good quality light oil has been discovered in an offshore Brazilian block where Videocon Industries and Bharat Petroleum Corp Ltd (BPCL) hold 40 per cent interest.

Brazilian national oil company Petrobras has completed formation test to assess the potential of a petroleum deposit in a well in the BM-SEAL-11 concession in the SEAL-M-426 block in ultra-deep waters of the Sergipe-Alagoas Basin. "The results of the formation test confirmed the presence of light oil (37 Degrees API) and good productivity of the reservoirs," the two Indian firms said in almost identical but separate regulatory filings.

Drilling has identified two reservoir intervals of light oil and gas - the top with a thickness of 44 meters, and the bottom 11 meters thick, the bottom zone being a new discovery for the area, they said. The well is located 102.7 kms from the city of Aracaju and 10.3 kms from the first discovery well 'Farfan', in a water depth of 2,467 meters.

"The well drilling reached a final depth of 6,060 meters. This is the third appraisal well in Farfan area, discovered in October 2012," the filings said. The consortium partners will continue implementation of the Discovery Assessment Plan (PAD) as approved by the Brazilian regulatory authority ANP. 

Petrobras holds 60 per cent interest in the concession and IBV Brasil -- a Brazilian joint venture company equally held by Videocon Energy Brazil Ltd, a wholly-owned overseas subsidiary of Videocon, and BPRL Ventures NV, a wholly-owned subsidiary of BPCL -- holds the remaining 40 per cent. Pradeep N Dhoot, Dubai-based Director of Global E&P Business of Videocon said, 

“The formation tests of the new hydrocarbon accumulations at multiple plays will further add to the hydrocarbon resources already indicated in the Block.”