A significant oil discovery has been made in an ultra-deep water block off Brazil where Bharat Petroleum Corp Ltd. (BPCL) and Videocon Industries together hold 40 per cent interest.

Brazilian oil giant Petrobras, which is the operator of the block, has confirmed the Farfan-1 oil discovery in the ultra-deep waters of the Segipe-Alagoas basin, off Brazil, Videocon said in a statement.

The state-owned firm has confirmed excellent productivity of good quality crude following a drilling test.

Petr Brasileiro SA (Petrobras) has completed a test in well 3-BRSA-1178D-SES (3-SES-176D), informally known as Farfan 1, to test the production capacity of the accumulation in the BM-SEAL-11 concession area of Block SEAL-M-426.

Based on an evaluation of 30 metres of turbidite sandstones, the test found good quality oil with a density of 38 degrees API in a ‘good’ reservoir with ‘excellent productivity’, the statement said.

Farfan-1 is located 104 km north of Aracaju, the capital of the northeastern Brazilian state of Sergipe. It lies in a water depth of 2476 metres, about 5 km from the Farfan discovery well.

Petrobras is the operator of the block with a 60 per cent interest while IBV Brasil (a 50:50 joint venture of BPCL and Videocon) holds the remaining 40 per cent stake.

A 51-metre reservoir was discovered at Farfan-1 well. The discovery has been estimated to hold more than 1 billion barrels of oil.

Petrobras Chief Executive Maria das Gracas Foster had previously said the BM-SEAL-11 concession could produce at least 100,000 barrels a day of oil, starting in 2018. — PTI