Statoil looks deeper at Brazilian oil find

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RIO DE JANEIRO, Oct. 25 (UPI) -- Norwegian energy company Statoil announced it had a positive view of an oil discovery off the Brazilian coast after completing an appraisal well.

Statoil, along with its partners at Chinese energy company Sinochem, said it completed drilling an appraisal well in the Peregrino South discovery in the offshore Campos Basin.

"The results confirm the significant potential in the Peregrino South in the exploration well that was completed in April 2011," the company said. At that time, Statoil said oil production at Peregrino could ramp up to about 100,000 barrels of oil equivalent per day. The field was estimated to hold as much as 600 million barrels of recoverable oil equivalent.

Kjetil Hove, Statoil's president in Brazil, said his company was working toward a final investment decision with the aim of developing the Peregrino area.

The Peregrino field is about 52 miles off the Brazilian coast in shallow waters. Statoil said the field is one of the largest offshore fields in Brazilian territory.