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Statoil finds more oil in Brazil

STAVANGER, Norway, Dec. 17 (UPI) -- Norwegian energy company Statoil announced that it struck oil at a shallow-water basin about 90 miles from the Brazilian coastline.

Statoil said it encountered an oil reservoir that was about 230 feet thick in the Espirito Santo Basin off the coast of Brazil. Analysis indicates the prospect contains medium crude oil.

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"We are very pleased to have struck oil here and the result will have an important bearing on our decision regarding further exploration activity in this area," Tim Dodson, Statoil's vice president of international exploration, said in a statement.

The company said it plans to operate three exploration wells in Brazil next year. Statoil formed a consortium during the summer with Chinese conglomerate Sinochem Group to develop Brazil's offshore Peregrino field in order to start production in early 2011.

That field is about 50 miles offshore in the oil-rich Campos Basin in 325 feet of water. Statoil estimates the field holds at least 300 million barrels of oil.

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