SAO PAULO Jan 3 Brazil's state-controlled oil
company Petroleo Brasileiro SA and Repsol Sinopec, a
joint Spanish-Chinese venture in the country, are handing back
exploration rights at the Piracucá field in the Santos basin due
to lack of commercial viability, the companies said.
Brazil's oil regulator, ANP, said the companies had given up
the concession to explore the oil and gas field, which was
awarded by the government in 2000, according to a statement in
Brazil's Official Gazette.
Piracucá was declared commercial in 2009 but further
studies showed the area was not commercially viable, Petrobras,
as the Brazilian state-controlled oil company is commonly known,
said in a statement sent to Reuters.
It did not elaborate on any possible financial charges
related to the decision.
Repsol Sinopec told Reuters in a statement that it has
booked a charge but did not elaborate on its value.
(Reporting by Luciano Costa; Writing by Tatiana Bautzer;
Editing by Daniel Flynn and Paul Simao)