The results of one of Brazil's most anticipated wells in years show that it contains hydrocarbons in a deepwater area offshore the state of Amapá, according to Petrobras, which is the sole owner and operator of the exploration block.
The Morpho-1 well is located in Block FZA-M-59, more than 100 miles offshore and 300 miles from the mouth of the Amazon River, within Brazil's Equatorial Margin. Petrobras hopes the frontier region will become its next major source of oil and gas production as output from the country's prolific pre-salt basins gradually matures.
Petrobras said the well was drilled in a water depth of almost 9,500 ft, and the presence of hydrocarbons was confirmed through well logs. The company did not release further details about the quality of the discovery.
“Our optimism regarding Brazil’s Equatorial Margin is confirmed today. This first discovery off the coast of Amapá is the result of Petrobras’ dedication and competence, which is committed to replenishing oil reserves and ensuring the country’s energy security,” Magda Chambriard, the CEO and president of Petrobras, said in an announcement.
Petrobras began drilling the Morpho-1 well late last year and is continuing drilling operations while evaluating the discovery. The well has been closely watched by industry observers and was a major topic of discussion earlier this year at the Offshore Technology Conference in Houston, where Petrobras executives and other industry representatives called on the Brazilian government to speed up permitting approvals in the Equatorial Margin.
Petrobras operates the block, which it acquired in 2013, and holds a 100% working interest. The company has faced years of delays in drilling the well after Brazil's environmental regulator initially rejected its plans, citing concerns over the block's proximity to environmentally sensitive areas.
To address concerns about its ability to respond to a potential incident, Petrobras has assembled a fleet of vessels and aircraft that could be deployed in the event of an oil spill.
Depending on the quality of the discovery, and its ability to secure additional drilling permits, Petrobras plans to invest $2.5 billion in the Equatorial Margin through 2030. The spending plan represents more than one-third of the company's total exploration budget and includes plans to drill 15 exploration wells across the frontier region.