Repsol, Sinopec spot deep Brazil oil

The Madrid-based company's joint venture with China Petrochemical Corporation, known as Sinopec, found signs of oil in 2.789 metres of water at the BM-C-33 exploration block in Brazil's Campos Basin, Bloomberg reported, citing data from Brazil's National Petroleum Agency.

It's the deepest well currently being drilled in the country, according to data on the regulator's website, and hasn't been declared commercially viable, the news wire said.

Repsol is exploring in Brazil's Santos, Espirito Santo and Campos basins, including minority stakes in the Guara and Carioca discoveries where the company estimates recoverable reserves of as much as 3 billion barrels.

Repsol is exploring the so-called pre-salt region in Campos, an area where Petrobras has found an estimated 1.1 billion barrels.

Repsol Sinopec controls 35% of the block, while Statoil do Brasil Ltda. owns 35% and Petrobras the remainder. Repsol sold 40% of its Brazil unit to Sinopec for $7.1 billion in 2010 to help finance investments.

Repsol fell 1.4% to 21.58 euros at 2:05 pm in Madrid.

Upstream Onlin / News wires  25 January 2012