Videocon-BPCL JV strikes oil off Brazilian coast

A joint venture between Videocon Industries and state-run Bharat Petroleum Corp (BPCL) together with Brazil government-owned Petroleo Brasileiro (Petrobras) has discovered good quality light oil in a field off the Brazilian coast.

"The results of the formation test confirmed the presence of light oil (37 Degrees API) and good productivity of the reservoirs," the two Indian firms said in separate filings to the stock exchange on Monday.

Drilling has identified two reservoir intervals of light oil and gas in the BM-SEAL-11 concession in the SEAL-M-426 block in ultra-deep waters of the Sergipe-Alagoas Basin, they said.

The well is located 102.7 km from the city of Aracaju and 10.3 km from the first discovery well 'Farfan', in a water depth of 2,467 metres.

"The well drilling reached a final depth of 6,060 metres. This is the third appraisal well in Farfan area, discovered in October 2012," the filings said.

"The formation tests of the new hydrocarbon accumulations at multiple plays will further add to the hydrocarbon resources already indicated in the block," said Pradeep N. Dhoot, director of exploration and production (E&P) at Videocon.

Petrobras holds 60 percent interest in the block while IBV Brasil -- a Brazilian joint venture, equally held by Videocon subsidiary Energy Brazil and BPCL subsidiary BPRL Ventures -- holds the remaining 40 percent.