Brazil discovers huge new oil reserves

If one of the deposits turns out to be as vast as it appears, Brazil will be in the same league "as the Arab countries, Venezuela and others," the senior minister in charge of the cabinet, Dilma Rousseff, said on Thursday.

Petrobras, Brazil's national oil company, said in a statement that exploration of its Tupi field, offshore Sao Paulo state, revealed it could produce up to eight billion barrels of light oil and natural gas.

It said that find, along with another potential field still being explored farther south, could propel Brazil "among the countries with the biggest oil and gas reserves in the world."

The head of Petrobras, Jose Sergio Gabrielli, told a media conference in Rio de Janeiro that Brazil's total reserves could now place it "between Nigeria and Venezuela."

Shares in the company soared on the news, closing 14.57 per cent higher at 93.40 reais on the Sao Paulo stockmarket.

Petrobras's previous stated reserves, given at the end of 2006, were the equivalent of 11.46 billion barrels of oil.

The Tupi find alone could boost that by 50 per cent.

Petrobras operates the Tupi area, of which it holds 65 per cent.

British energy group BG holds a 25 per cent share in the field and Portugal's Petrogal-Galp Energia holds 10 per cent.

Petrobras also holds the lion's share of interest in the other field being tested. - DDNEWS