March 26 (Bloomberg) -- Petroleo Brasileiro SA, Brazil's state-controlled oil company, is close to confirming the discovery of a ``gigantic'' field of light-grade crude under the Campos Basin, the Globo daily newspaper reported, without saying where it got the information.

Company President Jose Sergio Gabrielli and Guilherme Estrella, exploration director, met with Brazilian President Luiz Inacio Lula da Silva on March 22 to tell him they're close to confirming the field, located off the coast of Rio de Janeiro.

The field, if economically recoverable reserves are confirmed, would be one of the largest of its type in the world, Globo said. Petrobras, as the company is known, on July 12 said it found a new exploration frontier under a salt layer that sits beneath existing Campos Basin heavy oil fields.

The oil company's presidential spokeswoman, who isn't allowed by Petrobras to be identified, confirmed the meeting with Lula took place. She declined to say what was discussed. Petrobras will only comment on new fields after formally notifying the country's petroleum regulator, she said.

(Globo 3-26 p.12)

To contact the reporter on this story: Jeb Blount in Rio de Janeiro at jblount@bloomberg.net.

Last Updated: March 26, 2007 10:27 EDT