Petrobras Expands Deepwater Discovery Zone With Dolomita Find

Petroleo Brasileiro SA (PETR4), Brazil’s state-controlled oil company, found “good quality” oil in a new region of the Santos Basin that holds the country’s largest discoveries.

Petrobras, as the Rio de Janeiro-based producer is known, drilled the Dolomita South well 177 kilometers (110 miles) off the coast in the so-called pre-salt region, the company said in a statement late yesterday. The discovery is closer to shore than a cluster of fields in Santos including Lula, the country’s biggest.

“This discovery confirms the potential of the pre-salt region, outside the limits of the first discoveries,” Petrobras said in the statement.

Brazil is developing the largest discoveries in the Americas since 1976 in deep waters of the Atlantic Ocean where oil is trapped under miles of water, rock and salt. Oil companies including BP Plc (BP/), Total SA (FP) and Statoil ASA (STL) are waiting for Brazil to offer new exploration licenses off the country’s coast.

Dolomita is located in block BM-S-42 where Petrobras has a 100 percent stake. Petrobras will continue drilling the well to find deeper reservoirs, the company said.

Petrobras rose 3.1 percent yesterday to 22.01 reais, the biggest gain in a month. The stock is up 2.4 percent for the year to date, less than the 11 percent gain in the benchmark stock index.

To contact the reporter on this story: Peter Millard in Rio de Janeiro at pmillard1@bloomberg.net

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

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