RIO DE JANEIRO, BRAZIL - Brazil's oil agency on Wednesday announced a deep water find that could contain some 4.5 billion barrels of oil, putting the country on its way to becoming one of the world's leading oil producers.

The well was drilled 195 kilometers (120 miles) off the coast of Rio de Janeiro in the massive 400 square kilometer (150 square mile) Santos basin oil reserve.

Oil in the reserve is located under a thick salt layer, and the well was drilled 2,189 meters below the ocean surface, the agency said in a statement.

Brazilian engineers believe that the reserves in the vast salt-layer region may exceed 50 billion barrels, which would turn the country into one of the world's largest oil producers and exporters.

The depth of the oil find poses big technical challenges and will require enormous investment before the fossil fuel can be safely extracted.

Petrobras announced the discovery of oil in the first big offshore field, Tupi, in late 2007.

In August 2009, Brazil unveiled plans to boost state control of the offshore oil fields by giving Petrobras sole operating rights and a minimum 30 percent stake in any joint ventures. --AFP