Brazil's Petrobras makes second oil find in Foz do Amazonas Basin's Morpho exploration well

Brazilian state-led oil company Petrobras made a second oil discovery in the Morpho exploration well currently being drilled in the FZA-M-59 block of the Foz do Amazonas Basin, marking a major advance in exploration of the frontier equatorial margin, the company said Oct. 2.

"The new discovery will increase understanding of the exploration potential of the area and provide additional information to evaluate the oil-bearing systems and resource potential of the Foz do Amazonas sedimentary basin," Petrobras said in a statement after markets opened.

The latest find was made after Petrobras continued work on the Morpho well at the request of Brazil's National Petroleum Agency, which wanted the company to evaluate deeper geologic formations, Petrobras said.

Petrobras announced the initial Morpho discovery on Aug. 14, then briefly halted work on the well to further study characteristics of the oil find before drilling was restarted.

"The ongoing drilling operations of the well after the discovery announced in August 2026 aimed to evaluate deeper exploratory intervals and led to this new discovery," Petrobras said. The oil discovery was confirmed through drilling logs as well as rock and fluid samples obtained during the drilling.

Work on the Morpho, which is also known as 1-BRSA-1405-APS under the ANP's identification system, remains ongoing, according to Petrobras. Morpho was the first major exploration well drilled in the most promising region of Brazil's equatorial margin that stretches along the country's northern coastline in more than 15 years. The well was drilled in waters 2,886 meters deep, about 175 kilometers off the coast of Amapa state.

While Petrobras plans to further evaluate the latest discovery via laboratory analysis and combine the new data with results obtained during earlier drilling activity at Morpho, studies of the initial discovery in August indicate the well reservoir holds high-quality light oil, the company said.

The second oil discovery in Morpho will also raise expectations for the three contingent wells Petrobras plans to drill in the FZA-M-59 block, with work expected to start in early 2027. The Brazilian Institute for the Environment and Renewable Natural Resources, or IBAMA, approved Petrobras' request for three drilling permits to tap the contingent wells on Sept. 3.

Petrobras plans to use the Constellation-operated Amaralina Star, also known as NS-43, for the drilling campaign, according to the company and IBAMA. The sixth-generation drillship, however, is currently at work off Brazil's southeast coast and will need to undergo a hull cleaning before it can start drilling the three contingent wells.

The Morpho extension well will be drilled slightly to the northeast of the initial Morpho discovery well, according to IBAMA's coordinates. The Crotalus well, meanwhile, will target a prospect in the northwest section of the FZA-M-59 block. The Manga well will target a prospect to the southwest of the initial Morpho discovery well.

Petrobras owns 100% of the FZA-M-59 block, which was purchased during Brazil's 11th bid round held in 2013.

Equatorial margin campaign

The three contingent wells in the FZA-M-59 block are part of Petrobras' broader plans for the equatorial margin, which is widely considered one of Brazil's last offshore oil and natural gas exploration frontiers. Under Petrobras' $109 billion strategic investment plan for 2026-2030, the company earmarked $2.5 billion to drill 15 exploration wells in the region. Petrobras holds stakes in 32 equatorial margin blocks, covering the Foz do Amazonas, Para-Maranhao, Barreirinhas, Ceara and Potiguar offshore basins.

Geologists believe that the region holds similar deposits to those discovered off the coasts of South American neighbors Guyana and Suriname, as well as the west coast of Africa. Brazil's Mines and Energy Ministry estimated that the country's portion of the equatorial margin could hold as much as 6.2 billion barrels of recoverable reserves.

Petrobras also plans to restart exploration work in the offshore Potiguar Basin in the near future, according to company officials. The company will utilize the ODN-II drillship currently at work on Morpho to drill the Mae de Ouro prospect offshore Rio Grande do Norte state.

The Potiguar Basin is home to the Anhanga and Pitu Oeste discoveries, where oil and natural gas were discovered off the coast of Rio Grande do Norte state in 2024. The two wells were drilled to evaluate the Pitu discovery that was made in 2013.