Brazil's Petrobras finds hydrocarbons in Foz do Amazonas basin

Brazilian state-run oil company Petrobras has identified the presence of hydrocarbons in an exploratory well in the Foz do Amazonas basin, off the northern coast in the Atlantic Ocean, the firm said on Friday.

The drilling operations in the environmentally sensitive region are still under way, the firm said in a securities filing.

"It's a huge joy, but it's also a step forward in the direction of what we’re aiming for," Petrobras Chief Executive Magda Chambriard told Reuters over the phone.

The CEO added the find "heats up" the whole region. Commercial viability still needs to be assessed, Chambriard said, noting the state-run oil firm plans to drill three more wells in the region.

Petrobras' push to drill an exploratory well in the Foz do Amazonas basin, near the mouth of the Amazon River, has sparked contentious debate in Brazil, pitting environmental concerns against the oil firm's argument it needs to replenish its reserves.

The company last year got an environmental license to drill in the sensitive area after a years-long effort and boosting its emergency oil spill response plan.

Foz do Amazonas is part of Brazil's Equatorial Margin, and is viewed by Petrobras as its most promising new oil frontier due to geological similarities with neighboring Guyana, where Exxon Mobil has discovered vast offshore reserves.