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Repsol Sinopec Finds Oil at Brazil’s Deepest Well

Repsol (REP) YPF SA, Spain’s biggest oil company, said it found traces of crude in the deepest area being explored in Brazil.

The Madrid-based company’s joint venture with China Petrochemical Corp., known as Sinopec, found signs of oil in 2.789 meters of water at the BM-C-33 exploration block in Brazil’s Campos Basin, Brazil’s National Petroleum Agency reported on its Website. 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.

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 Petroleo Brasileiro SA (PETR4) has found an estimated 1.1 billion barrels.

Repsol Sinopec controls 35 percent of the block, while Statoil do Brasil Ltda. owns 35 percent and Petrobras, as the state-controlled producer is known, holds the remainder. Repsol sold 40 percent of its Brazil unit to Sinopec for $7.1 billion in 2010 to help finance investments.

Repsol fell 1.4 percent to 21.58 euros at 2:05 p.m. in Madrid.

To contact the reporter on this story: Karen Eeuwens in London at keeuwens@bloomberg.net

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

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