Bloomberg News

Galp Finds Oil Second Time in Six Weeks in Northern Brazil

February 07, 2012

(Updates with finds this year in fourth paragraph.)

Feb. 7 (Bloomberg) -- Galp Energia SGPS SA, Portugal’s biggest crude producer, struck oil for a second time in six weeks in the basin where about a third of Brazilian discoveries so far this year were made.

Galp’s Petrogal Brasil SA unit found oil at the second of two wells it’s currently drilling in the South American country’s northern Potiguar basin, according to data on the Brazilian petroleum regulator’s website. Before this year, Petrogal last found oil in the area in 2010.

The Portuguese producer last year sold 30 percent of the unit to China Petrochemical Corp. for $3.54 billion to raise funds to tap 33 Brazilian oil blocks where it holds stakes. The stakes include 10 percent of the offshore Lula field, the largest crude discovery in the Americas since Mexico’s Cantarell in 1976.

Six of the 16 oil finds in Brazil this year were in the Potiguar basin. Galp, which owns stakes in an onshore block and two offshore blocks in Potiguar, announced the first discovery this year in the area on Jan. 2.

State-run producer Petroleo Brasileiro SA announced four discoveries in Potiguar this year, one of which is an offshore well.

The Campos and Santos basins in southeastern Brazil are the largest producing areas in the country. Potiguar ranked third in December, producing 2.7 percent of the country’s oil, according to the oil regulator, known as ANP.

--With assistance from Peter Millard in Rio de Janeiro. Editors: Carlos Caminada, Dale Crofts

To contact the reporters on this story: Karen Eeuwens in London at keeuwens@bloomberg.net; Rodrigo Orihuela in Rio de Janeiro at rorihuela@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net


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