Petrobras Makes Oil Discovery in Santos Basin

Brazilian oil company, Petroleo Brasileiro, also known as Petrobras, has made an oil discovery in the pre-salt area of the Santos Basin, offshore Brazil.

The well, informally named Iguaçu Mirim, is situated 303 km from the coast of the state of São Paulo. The oil discovered has an API gravity of 20 degrees. API gravity, is a measure of how heavy or light oil is compared to water. If API gravity is greater than 10, it means that the oil is lighter and floats on water; if less than 10, it is heavier and sinks.

The block BM-S-9 is operated by Petrobras (45%) in partnership with BG E & P Brazil (30%) and Repsol Sinopec Brazil (25%). The deadline for declaration of commerciality is December 31, 2013.

Petrobras is expected to release its quarterly financial results Friday. According to Forbes, analysts expect Petrobras to report an increase in net income, compared to the same period in 2012