Brazil's state-run oil company Petrobras has reported the discovery of new oil reserves in the Espirito Santo Basin, on the South Atlantic coast.

Initial estimates point to a potential of around 150 million barrels of recoverable, good quality oil, with the reserves located in the area currently being used for the Golfinho field, around 40 miles from Vitoria, the capital city of the Espirito Santo region.

In addition, it has been confirmed that the new discovery is located in a concession that belongs 100 per cent to Petrobras, thereby allowing the company to begin work on recovering the oil within the near future.

The discovery is likely to be welcomed by Brazilian energy industry chiefs, particularly following the disruption to production caused by the ongoing strike by workers over cuts.

As many as 33 of the firm's production sites have so far been affected by the strike, with the workers' union stating that overall production has fallen by seven per cent as a result of the industrial action.