Noble Reports Gulf Discovery, Petrobras Hires Citigroup: Energy Business Review

In a Tuesday press release, Noble Energy (NYSE:NBL) reported a discovery in 7,200 feet of water on Mississippi Canyon Block 698 at the Big Bend exploration prospect in the deepwater Gulf of Mexico. Open-hole logging identified about 150 feet of net oil pay in two high-quality Miocene reservoirs. Noble is the operator with a 54 percent working stake in Big Bend, followed by W&T Energy VI, which is a wholly owned subsidiary of W&T Offshore (NYSE:WTI) with 20 percent, along with some privately-held companies.  Noble also announced that the Scotia exploration well offshore the Falkland Islands was drilled to a depth of 18,226 feet and reached its anticipated Cretaceous objective on 2D seismic. Initial log analysis has identified 164 feet of low quality reservoir, thus Falkland Oil and Gas (FLKOF.PK), the operator of the well, now intends to plug and abandon it.

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The Brazilian state-run oil giant Petrobras (NYSE:PBR) has recruited Citigroup (NYSE:C) to find a buyer for its Houston area refinery, as it  continues to rid itself of assets so as to help fund offshore drilling in Brazil, according to inside sources. A divestiture of the refinery, which produces 100,000 barrels per day, will likely hit Petrobras for a loss, since it originally paid almost $1.2 billion for the asset.

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