RIO DE JANEIRO - Devon Energy Corp and Anadarko Petroleum announced on Thursday an oil discovery off Brazil's coast in the subsalt province that the South American nation hopes will make it an energy powerhouse.
The Itaipu exploratory well, which was drilled to a total depth of 16,300 feet (4,968 meters) in the Campos Basin BM-C-34 block, encountered approximately 240 feet of oil column, at least 90 feet of net oil pay, Devon said in a statement.
Devon said the find is close to the Wahoo well in the nearby BM-C-30 block, which is operated by Anadarko but includes investment by Devon.
With the addition of the Itaipu discovery to our previous success at Wahoo, we have created significant value in Brazil, while just beginning to explore our Campos Basin prospects, said David A. Hager, Devon's vice president of exploration and production.
The find may boost interest in Brazil's Campos Basin, which currently pumps most of the country's oil but has been in part overshadowed by the massive subsalt finds, such as Tupi, in the Santos basin to the South.
Devon operates the block with a 40 percent working interest along with independent oil and gas producer Anadarko, which has a 33.3 percent stake, and South Korea's SK Energy (096770.KS), which holds the remaining 26.7 percent.
Brazil's Congress is currently overhauling laws governing its deep sea reserves in efforts to boost the government's share of the revenues from the subsalt province, which is believed to hold some 50 billion barrels of oil. (Reporting by Brian Ellsworth)