Brazil's Petrobras to complete drilling Morpho oil exploration well by end-October: CEO

Brazilian state-led oil company Petrobras expects to complete work on the Morpho oil exploration well in the Foz do Amazonas' FZA-M-59 offshore block by the end of October, with additional drilling around the high-quality light oil discovery likely to restart in the first half of 2027, according to CEO Magda Chambriard.

"We believe that the well will be completed by the end of October," Chambriard said Oct. 2 during a press conference to discuss a second oil discovery in the Morpho well. The second find was made at a deeper depth than the first discovery announced in mid-August, demonstrating that the well uncovered two separate and distinct reservoirs, she added.

While Petrobras has reached the final target depth at the Morpho well, the company is still conducting tests and evaluating data obtained during drilling, which could lead to additional surprises in the coming weeks, Chambriard said.

"We're still working on the well and expect to demobilize the rig by the end of the month," Chambriard said.

Petrobras declined to provide additional details about the initial discovery at Morpho announced Aug. 14, with Chambriard citing contractual clauses with Brazil's National Petroleum Agency that grant the company a two-year confidentiality period. During the two-year period, Petrobras can withhold information on drilling results such as the depth at which a reservoir was found, reservoir thickness and oil quality.

Chambriard did provide some clues about the quality of the oil uncovered in the first reservoir, demonstrating a vial of dark brown liquid extracted from Morpho that was highly viscous and did not stick to the sides of the glass tube as it was shaken. The executive called the crude unlocked by Morpho some of the best Petrobras has discovered, second only perhaps to the light oil and condensates produced by the Urucu field in the onshore Solimoes Basin.

The oil at Urucu, which has a gravity of about 49.5 API, is so light and free of contaminants that it was used directly in heavy machinery when diesel supplies were low during the field's development in the 1980s, according to Petrobras. The ANP's latest production report released Sept. 1 showed that the Rio Urucu and Leste do Urucu fields in the Amazon rainforest produced about 91,000 b/d of oil equivalent in August.

FZA-M-59 drilling in 2027

Petrobras plans to restart drilling in the FZA-M-59 block in the first half of 2027, with the Constellation-operated Amaralina Star drillship expected to be mobilized in the first quarter and undergo a hull cleaning before traveling to the block, Chambriard said. The drillship, also known as NS-43, will drill three contingent wells that aim to determine the size of the Morpho discovery.

The Brazilian Institute for the Environment and Renewable Natural Resources, or IBAMA, approved drilling permits for the contingent wells on Sept. 3.

The Morpho extension well will be drilled slightly to the northeast of the initial 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.

In addition, Petrobras has submitted requests for drilling permits for seven more exploration wells in the Foz do Amazonas Basin offshore Amapa state, Chambriard said.

Petrobras holds stakes in a total of 16 blocks in the Foz do Amazonas Basin, including 100% operating stakes in six blocks acquired during the ANP's 11th bid round. Petrobras and ExxonMobil, meanwhile, teamed up to acquire 10 blocks during the ANP's fifth Open Acreage concession cycle held in June 2025. Petrobras and ExxonMobil hold 50% operating stakes in five blocks each, with the partner company retaining the remaining 50% equity share.

Under Petrobras' $109 billion strategic investment plan for 2026-2030, the company plans to spend $2.5 billion to drill 15 exploration wells across the Foz do Amazonas, Barreirinhas, Ceara, Para-Maranhao and Potiguar basins in Brazil's promising equatorial margin frontier.

The ODN-II drillship, also known as NS-42, will be demobilized and relocated to the Potiguar Basin offshore Rio Grande do Norte state upon completion of the Morpho well, Chambriard said. The rig, which is owned and operated by Foresea, will likely start work drilling the Mae de Ouro prospect in November.