Brazil's Institute for the Environment and Renewable Natural Resources, or Ibama, has granted a permit to Spanish-Chinese joint venture Repsol Sinopec to develop oil and gas reserves in the promising BM-C-33 offshore block.

The block, located in deep water of the Campos Basin, contains an estimated 700 million barrels of light crude and three trillion cubic feet of natural gas.

Repsol Sinopec is the operator and has a 35 percent stake, while Norway's Statoil and Brazilian state-controlled Petrobras are partners in the block with 35 percent and 30 percent stakes, respectively. EFE