2006, and Brazil Will Be Self-Sufficient in Oil

Brazil’s Petrobras – Petróleo Brasileiro – the country’s state-run oil giant, reports that between now and the year 2010 it will invest US$ 2.85 billion in pipeline transport of natural gas in Brazil.

According to Ildo Sauer, director of Gas and Energy, the funds will ensure the linkage of pipelines in the Southeast and Northeast regions.


Speaking at the Rio Gas & Oil Seminar, Sauer went on to say that Petrobras is working with estimated GDP growth of 4.5% annually and a 14% increase in demand for natural gas over the next seven years.


As for total sector investments, the president of the Brazilian Petroleum and Gas Institute (IBP), João Carlos de Luca, also speaking at the seminar, reported that they should reach between US$ 8 billion and US$ 9 billion, during the same period.


De Luca pointed out that that amount is nothing less than three times the petroleum sector investments during the 1990s.


And he added that although Petrobras continues to lead the sector, other companies are investing as well, boosting the development of domestic petroleum and gas production and distribution.


De Luca concluded by saying that government policy has also been an important stimulus for the sector, especially tax exemptions on needed imports in the program known as Repetro.


The executive manager of Exploration and Production at the Petrobras, Francisco Nepomuceno, said that the Brazilian oil company will continue to increase production until the end of 2005, when production should reach 1.85 million barrels per day.


And in 2006, with a further increase to 2.2 million barrels per day, Brazil will be self-sufficient.


Nepomuceno also said that with the arrival of the P-43 platform in December in the Barracuda-Caratinga field in Campos, in the state of Rio de Janeiro, there will be a spike in production.


“We have the infrastructure to handle 1.85 million barrels per day by the end of next year,” he declared.


This year production is running at an average 1.56 million barrels per day, but should rise to 1.64 million barrels per day by December.


Agência Brasil
Translator: Allen Bennett

Tags:

You May Also Like

Turning the Tide

Of all changes occurred in the last two decades, the most impressive was the ...

Having Learned from US Mistakes China Goes Soft to Win Brazil and LatAm’s Hearts

On November 5, 2008, the Chinese government released a policy paper on Latin America ...

Brazilian Colorful Fashion Is a Hit Overseas

Brazilian colorful prints of dresses by brand Anunciação, in the midwestern state of Goiás, ...

Best-seller Books, Plays and Movies

By Brazzil Magazine Alta Sociedade (High Society)—A rich and famous couple has to face ...

The End of the Plastic Bag As Seen from Brazil

People all over the world are becoming aware of a serious environmental problem: the ...

We Must Stop the Brazilian Lie that Access to School Equals Success

For years it has been said that Brazil took a great educational step forward ...

The Man Who Knew Too Much

"I committed the only sin that politics does not forgive: to tell the truth ...

LETTERS

There is a renewed interest in medicinal plants all over the world. The World ...

Brazil Lends Petrobras US$ 13 Billion to Fund Its 5-Year, US$ 174-Billion Plan

BNDES, Brazil's National Bank for Economic and Social development, will lend 25 billion reais ...

Primary Surplus and Inflation News Takes Brazilian Stocks to Record High

Brazilian shares surged on further signs of strength in Latin America’s biggest economy, while ...