Brazil to Become More Attractive to Oil Exploration

The president of the Brazilian Petroleum Institute (IBP), João Carlos França de Lucas, says that next year Brazil should hold a seventh round of tender offers for petroleum and gas exploration. 


Calling the sector fundamental for domestic development, Lucas said it could not be left unexplored. But he emphasized the need for clear, stable and competitive rules so that companies would be able to invest in the sector with security.

“Investments in the petroleum sector are big ones that require long-term planning. They must have clearly defined rules that make the country attractive and competitive.


“State taxation of the sector not only makes production more expensive, it muddies the situation because investors have doubts about the rules and that is not good for the country,” declared Lucas.


It was announced in July that Petrobras would offer a total of US$ 3.66 billion in the 6th Round of Bidding for Petroleum and Gas Exploration, held by the National Petroleum Agency (ANP) in August, in Rio.


The amount represents 60 percent of the US$ 6.1 billion that Petrobras plans to spend on exploration and production activities in 2004. The information came from Petrobras’s press office.

Along or together with other companies, the state enterprise is competing for 295 blocks in the mature Espí­rito Santo, Recôncavo, and Potiguar basins and nine areas on the continent and 680 blocks in 29 offshore sectors in various Brazilian states, for a total of 975 blocks.

The company’s board of directors did not wish to comment on the Federation of Petroleum Workers’ (FUP) demand for an immediate suspension of the auction of the sedimentary basins returned to the ANP after Petrobras had spent substantial sums to survey the area’s geology.


Some of the Zero Round blocks were wholly returned by Petrobras and others, partially. As the company sees it, this was a governmental decision, beyond the company’s jurisdiction to question.

The Association of Petrobras Engineers (Aepet), for its part, supports the FUP grievance. The Association regards the investments made by Petrobras as grounds for continuing the work performed by the company in those areas in search of petroleum, informed the president of the entity, Heitor Pereira.

The ANP informed that policy for the sector is determined by the Ministry of Mines and Energy and that its role is only that of implementer.


Slight Increase


Petrobras’s average production of petroleum and natural gas in domestic and foreign fields increased 1.7 percent in July, compared with June, and 1 percent, compared with July, 2003. Overall daily production averaged 2,059,443 barrels last month.

Domestic production totaled 1,792,356 barrels/day, 2 percent more than in June, but stable in comparison with July, 2003.

Domestic petroleum production alone accounted for 1,520,963 barrels/day, 1.9% more than in June. The explanation is that three new wells came on line recently, two in the South Marlin Field and one in the Bicudo Field, increasing daily production by 37.1 thousand barrels.

Despite the new wells, last month’s production fell 1.6 percent short of the figure for July, 2003.

In the eight foreign countries in which Petrobras operates, the volume of oil and natural gas produced in July was 267,087 barrels/day, 0.2 percent less than in June but 9.2 percent more than in July, 2003.

Agência Brasil

Tags:

You May Also Like

Tool to Protect Argentina from Brazilian Invasion Pleases Lula and Kirchner

Despite complaints of Brazilian entrepreneurs, the Presidents of Brazil, Luiz Inácio Lula da Silva, ...

These Brazilians Use the Pharaohs’ as Their Second Language

To a specific group of Brazilians, the signs and drawings on limestone and papyruses ...

Cornfield in Brazil

Brazil, India, US and EU Try to Break Doha’s Farm Subsidies Deadlock

Brazilian, Indian, American and European officials are meeting today in India for the first ...

Gabeira, a Do-gooder Brazilian Politico Among Foxes Devouring Public Chickens

Brazil’s leading news magazine, Veja, praised Congressman Fernando Gabeira as “the champion of ethics ...

Brazil and Neighbors at Triple Frontier Mad at Oscar-Winning Bigelow Latest Movie

Brazil, Argentina, Paraguay, they are all angry with Oscar-winning director Kathryn Bigelow’s latest project, ...

Brazil Inflation Now Is Above the Target Ceiling

Brazil official inflation rate, as measured by the National Broad Consumer Price Index (the ...

Market Lower in Brazil Amid Fears of Higher Interest Rates

Brazilian equities declined further, pressured by interest rate fears and additional profit taking. Brazil’s ...

Brazilian Equities Go Down on Rate Hike Fears

Latin American stocks dropped, alongside lackluster trading in U.S. equities following two days of ...

Shame, proclaims frontpage of Jornal do Brasil with Zidane eating a little canary, symbol of Brazil's national team

Brazil’s Fainthearts Let the Nation Down

"These guys don’t play with their hearts. They only play for money," was the ...

Brazilian President’s Latest African Tour Starts in Algeria

Brazilian President Luiz Inácio Lula da Silva in Algiers, where he will meet president ...