Brazilian oil and gas company Petrobras plans to start drilling in the Potiguar basin later this year, reports Reuters.

The Brazilian Government-backed company will send a rig to the site next week.

Currently, the rig’s hull is being cleaned.

In October 2023, Petrobras secured environmental clearance to drill two exploratory wells in the BM-POT-17 offshore block.

The exploration block is situated in the deep waters of the Potiguar basin, which is part of the maritime regions of the Brazilian states of Rio Grande do Norte and Ceará.

This would be the first exploration well drilled in the equatorial margin of Brazil since 2015.

According to Petrobras, the equatorial margin is one of the world’s “most promising frontiers” in deep and ultra-deep waters.

Previously, the energy company said it plans to invest roughly $300m (1.46trn reais) to drill the two deep-water wells in the Potiguar basin.

“With regard to the duration of the drilling, the forecast is between three and five months for each well in the Potiguar Basin exploratory campaign,” the energy company was quoted by the publication as saying.

The first well will be drilled 52km off the coast in block BM-POT-17.

Through the drilling, Petrobras hopes to obtain additional geological data about the area to evaluate the scope and viability of the oil discovery, which was made in 2013 at the Pitu well.

Separately, Petrobras announced that it has signed a memorandum of understanding with Denmark-based European Energy.

Under the alliance, the companies will explore business prospects for the development of a project to establish an e-methanol facility in Brazil.