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Petrobras Scores Second Oil Find in Foz do Amazonas Basin
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Key Takeaways
Petrobras made a second oil discovery at the Morpho well in Brazil's Foz do Amazonas Basin.
The deeper find expands Petrobras' understanding of petroleum systems and resource potential in the basin.
Petrobras plans three more wells in FZA-M-59, with drilling expected to begin in early 2027.
Petróleo Brasileiro S.A. - Petrobras (PBR - Free Report) has made a second oil discovery in the Morpho exploration well in Brazil’s Foz do Amazonas Basin, strengthening the exploration potential of the country’s Equatorial Margin. The discovery was made in block FZA-M-59, where Petrobras is the sole owner.
The Morpho well, also identified as 1-BRSA-1405-APS, is located in ultra-deep waters off Amapá state at a water depth of 2,886 meters. The latest oil-bearing interval was identified as drilling continued into deeper exploratory formations following the initial discovery announced in August 2026.
Deeper Drilling Expands Exploration Insights
The latest discovery was confirmed through electrical logs, rock evidence and fluid samples collected during drilling. Petrobras said the additional find will help expand its understanding of the petroleum systems and resource potential of the Amazon River Mouth Sedimentary Basin.
The company is continuing to analyze the newly collected material through laboratory studies. The results will be integrated with the broader dataset obtained during the drilling program to support further evaluation of the identified formations. Petrobras also said analyses of the initial August discovery have confirmed the presence of good-quality, light oil.
The Morpho well is particularly significant because it represents the first major exploration well drilled in the most promising portion of Brazil’s Equatorial Margin in more than 15 years. The well is located about 175 kilometers off the coast of Amapá.
Three More Wells Planned in FZA-M-59
The second discovery could raise expectations for Petrobras’ upcoming exploration campaign in the block. The company plans to drill three contingent wells in FZA-M-59, with operations expected to begin in early 2027.
Brazil’s environmental regulator, IBAMA, approved permits for the three wells in September. Petrobras plans to use the Constellation-operated Amaralina Star drillship for the campaign, although the rig will need to complete hull cleaning after finishing its current work off Brazil’s southeast coast.
The planned wells include the Morpho extension, located slightly northeast of the initial discovery, along with the Crotalus prospect in the northwest portion of the block and the Manga prospect southwest of the original Morpho well.
Petrobras Targets Equatorial Margin Growth
The FZA-M-59 campaign forms part of Petrobras’ broader effort to explore Brazil’s Equatorial Margin, considered one of the country’s major remaining offshore oil and gas frontiers. Under its 2026-2030 strategic investment plan, Petrobras has allocated $2.5 billion for 15 exploration wells in the region. The company holds interests in 32 Equatorial Margin blocks spanning several offshore basins.
The region is viewed as having geological similarities to prolific petroleum areas off Guyana, Suriname and the west coast of Africa. Brazil’s Mines and Energy Ministry estimates that the country’s portion of the Equatorial Margin could contain as much as 6.2 billion barrels of recoverable reserves.
New Discovery Supports Long-Term Exploration Strategy
The second Morpho discovery provides Petrobras with additional geological information as it assesses the broader resource potential of the Foz do Amazonas Basin. The company said exploration of block FZA-M-59 is consistent with its long-term strategy of replenishing oil and gas reserves through new frontiers while supporting Brazil’s energy needs.
With drilling activities at Morpho still underway and additional wells planned for 2027, the latest discovery adds momentum to Petrobras’ efforts to unlock the resource potential of Brazil’s Equatorial Margin.
PBR’s Zacks Rank & Key Picks
Headquartered in Rio de Janeiro, Petrobras is the largest integrated energy firm in Brazil and one of the largest in Latin America. Currently, PBR has a Zacks Rank #3 (Hold).
Drilling Tools International is a global oilfield services provider focused on supplying downhole tools used in horizontal and directional drilling. The Zacks Consensus Estimate for DTI’s 2026 revenues indicates 1.6% year-over-year growth.
Forum Energy is a global oilfield products company, serving the subsea, drilling, completion, production and infrastructure sectors of the oil and natural gas industry. The Zacks Consensus Estimate for FET’s 2026 earnings indicates 536.5% year-over-year growth.
Montauk Renewables is a fully integrated renewable energy company that specializes in the management, recovery and conversion of biogas into renewable energy. The Zacks Consensus Estimate for MNTK’s 2026 earnings indicates 1100% year-over-year growth.
View the Zacks #1 Rank List
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Petrobras Scores Second Oil Find in Foz do Amazonas Basin
Key Takeaways
Petróleo Brasileiro S.A. - Petrobras (PBR - Free Report) has made a second oil discovery in the Morpho exploration well in Brazil’s Foz do Amazonas Basin, strengthening the exploration potential of the country’s Equatorial Margin. The discovery was made in block FZA-M-59, where Petrobras is the sole owner.
The Morpho well, also identified as 1-BRSA-1405-APS, is located in ultra-deep waters off Amapá state at a water depth of 2,886 meters. The latest oil-bearing interval was identified as drilling continued into deeper exploratory formations following the initial discovery announced in August 2026.
Deeper Drilling Expands Exploration Insights
The latest discovery was confirmed through electrical logs, rock evidence and fluid samples collected during drilling. Petrobras said the additional find will help expand its understanding of the petroleum systems and resource potential of the Amazon River Mouth Sedimentary Basin.
The company is continuing to analyze the newly collected material through laboratory studies. The results will be integrated with the broader dataset obtained during the drilling program to support further evaluation of the identified formations. Petrobras also said analyses of the initial August discovery have confirmed the presence of good-quality, light oil.
The Morpho well is particularly significant because it represents the first major exploration well drilled in the most promising portion of Brazil’s Equatorial Margin in more than 15 years. The well is located about 175 kilometers off the coast of Amapá.
Three More Wells Planned in FZA-M-59
The second discovery could raise expectations for Petrobras’ upcoming exploration campaign in the block. The company plans to drill three contingent wells in FZA-M-59, with operations expected to begin in early 2027.
Brazil’s environmental regulator, IBAMA, approved permits for the three wells in September. Petrobras plans to use the Constellation-operated Amaralina Star drillship for the campaign, although the rig will need to complete hull cleaning after finishing its current work off Brazil’s southeast coast.
The planned wells include the Morpho extension, located slightly northeast of the initial discovery, along with the Crotalus prospect in the northwest portion of the block and the Manga prospect southwest of the original Morpho well.
Petrobras Targets Equatorial Margin Growth
The FZA-M-59 campaign forms part of Petrobras’ broader effort to explore Brazil’s Equatorial Margin, considered one of the country’s major remaining offshore oil and gas frontiers. Under its 2026-2030 strategic investment plan, Petrobras has allocated $2.5 billion for 15 exploration wells in the region. The company holds interests in 32 Equatorial Margin blocks spanning several offshore basins.
The region is viewed as having geological similarities to prolific petroleum areas off Guyana, Suriname and the west coast of Africa. Brazil’s Mines and Energy Ministry estimates that the country’s portion of the Equatorial Margin could contain as much as 6.2 billion barrels of recoverable reserves.
New Discovery Supports Long-Term Exploration Strategy
The second Morpho discovery provides Petrobras with additional geological information as it assesses the broader resource potential of the Foz do Amazonas Basin. The company said exploration of block FZA-M-59 is consistent with its long-term strategy of replenishing oil and gas reserves through new frontiers while supporting Brazil’s energy needs.
With drilling activities at Morpho still underway and additional wells planned for 2027, the latest discovery adds momentum to Petrobras’ efforts to unlock the resource potential of Brazil’s Equatorial Margin.
PBR’s Zacks Rank & Key Picks
Headquartered in Rio de Janeiro, Petrobras is the largest integrated energy firm in Brazil and one of the largest in Latin America. Currently, PBR has a Zacks Rank #3 (Hold).
Investors interested in the energy sector may consider some top-ranked stocks like Drilling Tools International Corporation (DTI - Free Report) , Forum Energy Technologies, Inc. (FET - Free Report) and Montauk Renewables, Inc. (MNTK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Drilling Tools International is a global oilfield services provider focused on supplying downhole tools used in horizontal and directional drilling. The Zacks Consensus Estimate for DTI’s 2026 revenues indicates 1.6% year-over-year growth.
Forum Energy is a global oilfield products company, serving the subsea, drilling, completion, production and infrastructure sectors of the oil and natural gas industry. The Zacks Consensus Estimate for FET’s 2026 earnings indicates 536.5% year-over-year growth.
Montauk Renewables is a fully integrated renewable energy company that specializes in the management, recovery and conversion of biogas into renewable energy. The Zacks Consensus Estimate for MNTK’s 2026 earnings indicates 1100% year-over-year growth.