Oil Reserves Found Off Brazil's Coast

Four offshore oil exploration areas owned jointly by Brazilian state-run oil company Petroleo Brasileiro, Royal Dutch/Shell Group and Exxon Mobil Corp. are commercially viable, Shell's Brazilian unit said in a statement.

The areas are within an offshore block 74 miles off the coast of Brazil's southeastern state of Espirito Santo. Shell and Petrobras each have a 35% stake in the block, and Exxon Mobil has 30%.

The block, which has reserves estimated at 400 million barrels of oil, could produce 60,000 to 100,000 barrels a day of crude by 2009, Shell said. The declaration comes after oil was found in six of 13 test wells in the area.

Petrobras says Brazil will become self-sufficient for its own oil needs in 2006. Brazil's domestic demand is about 2 million barrels a day.