IBV Brasil, a 50-50 joint venture between Videocon Industries and BPCL, and Petroleo Brasileiro SA have found more than a billion barrels of oil in a field off the Brazilian coast. Both the entities have found the ‘SEAL-11’ exploration block which contains very large amounts of high-quality light crude oil and natural gas.
The SEAL-11 block and adjacent areas, 100 kilometers (62 miles) off the coast of the Brazilian state of Sergipe, may hold more than 3 billion barrels of oil in place. If confirmed, that would make the block one of the biggest global discoveries of the year. Petroleo Brasileiro owned 60 percent in the block, while 40 percent will be held by IBV (Videocon and BPCL).
If the area proves to have 3 billion barrels or more in place, it could ultimately produce 1 billion barrels based on Brazilian recovery rates of 25 percent to 30 percent of oil in place.
Videocon is globally recognized in this field and shares a seat with amongst the world’s largest oil companies in oil exploration and hence opportunities come to us more easily than they did five years back.
