Petrobras Confirms Hydrocarbons at Morpho Well in 2,886 Metres of Water Off Amapa

Petrobras announced the discovery of oil at the Morpho well on Monday the 17th, in block BM-FZA-59 on the Equatorial Margin, in deep waters off the coast of Amapa, Brazil. Water depth at the location is 2,886 metres, and no volume estimate has been released.

The state-controlled company holds 100% of block BM-FZA-59 and is the operator. The acreage was acquired in 2013 in the 11th licensing round of the Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis (ANP), under the concession regime.

Hydrocarbons were identified through electrical logs and indications observed in the rocks during drilling, according to Petrobras. The well, designated 1-BRSA-1405-APS, sits roughly 175 kilometres from the Amapa coast and about 500 kilometres from the mouth of the Amazon.

Drilling is not finished. Chief executive Magda Chambriard said the well had reached around 3,000 metres of water depth plus a further 3,000 metres through rock, with approximately 1,000 metres left to the bottom of the hole. Completion is forecast within 15 to 20 days.

Chambriard said it is not yet possible to estimate the volume of oil found or the production potential of the area. Petrobras still has to finish the well and carry out studies to size the discovery and assess whether commercial development is viable. The company said it will continue drilling to deepen the exploratory evaluation.

The spending behind the campaign is already substantial. Chambriard said Petrobras has invested USD 3 billion since August of last year, when the current exploratory campaign in the region began. Exploration operations cost about USD 1 million per day.

"It is a discovery that is the fruit of years of work, with a great deal of embedded technology, much effort and much investment, but which so far has confirmed all our expectations of relevant oil potential on the Equatorial Margin, more specifically off the coast of the state of Amapa," Chambriard said.

Petrobras has further wells planned in the region's exploratory programme and has filed licensing requests with the Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renovaveis (Ibama) for new drilling on the Equatorial Margin.

The first indication came earlier. Petrobras said it had identified the presence of hydrocarbons in an exploratory well being drilled in block FZA-M-59, in ultra-deep waters off Amapa in the Foz do Amazonas basin, on the Brazilian equatorial margin, a finding communicated on Friday the 14th.

President Luiz Inacio Lula da Silva, visiting the region on the 17th, highlighted the importance of the discovery for the future of oil production in the country. He said the country will continue to be the country of biofuel innovation and will remain very large on the question of renewable fuel.

Market reaction sat inside a broader selloff. PETR4 was quoted at BRL 47.11, up 0.30%, according to market data on the page carrying the report. The Ibovespa fell 3.27% over the week, its worst run since 2023, while the dollar jumped 2.68%.

For operators tracking new ultra-deepwater plays, the relevant markers here are the 2,886-metre water column, the 100% working interest, and the absence of any volume figure until the remaining 1,000 metres are drilled. The pending Ibama licences determine whether the programme extends beyond Morpho.