Petroleo Brasileiro, known also as Petrobras, said it made a discovery of light hydrocarbons in a well in 7,367 feet of water in the Sergipe-Alagoas Basin, off the coast of Brazil's Sergipe state. The discovery is the fifth for the year in the basin for Petrobras.
Petrobras said oil in the region was "found in good quality reservoirs" and measured around 100-feet thick.
The company said it was planning to move forward with deeper drilling plans in the reservoir.
Petrobras last month said oil production in Brazil reached 1.94 million barrels per day in October, a 5.3 percent increase from the previous month. Natural gas production reached 2.2 trillion cubic feet for October, a 3.5 percent increase from September totals.
Brazil ranks second behind Venezuela in terms of proven oil reserves in South America.