Brazil's Mysterious 'Mega-Reserve' Oil Field Found, Then Lost
Well, easy come, easy go.
The “mega reserve” found in Brazil’s oil rich Santos Basin off the coast of São Paulo was found on Friday and lost on Monday. The National Petroleum Agency (ANP) said in a statement that an article published in Estado de Sao Paulo, that made the media rounds, including picked up here by yours truly, was false. There is no oil. At least no new oil. When asked by FORBES to confirm whether ANP found nothing at all, they said, “exactly.”
Boom, goes the dynamite.
Petrobras shares rose on Monday and then settled at break even by market close on the news. The stock is down 0.11%, however, after hours.
In Brazil, news of the discovery was shared by over 25,000 readers on Facebook.
ANP is always doing geographical studies of Brazil’s lucrative deep water fields in hopes to find the equivalent of a Lula field, to date the most prolific in the pre-salt drilling zones. The story was that this find was potentially as big. But what ANP “found” is just a lead, like a salesman selling cars to a family that needs two cars, just has one. It doesn’t mean they’re buyers. And it surely doesn’t mean they’re buying from him.
There may very well be oil in those waters, but ANP has no evidence of it yet.