By Jason Simpkins
With Exxon Mobil Corp.’s (XOM) new oil discovery off the coast of Brazil - the latest in
a series of such offshore finds and potentially the largest Western Hemisphere
discovery in three decades - the South American nation has taken another giant
step in its quest to become a global energy superpower.
Exxon’s Azulao-1 well tapped a reservoir that reportedly contains as much as
8 billion barrels of recoverable oil, says Luiz Lemos, a partner at
TozziniFreire Advogados, a Brazilian law firm that represents foreign energy
companies.
“This is very huge,” Lemos told Bloomberg News.
So is the potential benefit for Brazil. If Lemos’ estimate is accurate, this
new Azulao find will rival the nearby Tupi oil
field as the largest discovery on this side of the planet since Mexico’s Cantarell
field was discovered in 1976.
Lemos’ estimate is unconfirmed, but Exxon Mobil Chief Executive Officer Rex Tillerson described the find in January as “a huge
potential resource.”
Exxon first notified Brazilian regulatory agency National Petroleum Agency
that it discovered hydrocarbons in the reservoir, identified as BM-S-22, on Jan.
16. The world’s largest oil company operates the block with a 40% stake. Hess
Corp.
