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:

  • Show Comments (1)

  • jahar lal saha

    Some more details are required for assessment.Thank you……..J.L.Saha

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil President Promises FIFA There Will Be Beer at the Cup. But Congress Isn’t So Sure

Joseph Blatter, the head of FIFA, after meeting with Brazilian president Dilma Rousseff, the ...

Brazil Shrinks 3.5%, Worst Decline in 13 Years

The economy of Brazil suffered the worst decline in more than a decade in ...

It’s Official: Brazil Won’t Renew IMF Accord

Brazil’s Minister of Finance, Antônio Palocci, informed the International Monetary Fund (IMF) that Brazil ...

Brazilian Sound: Luciana-Lubambo Duo Thrills Manhattan Audience

The sky was quite overcast at Manhattan’s Madison Square Park on a Wednesday evening, ...

Brazil May Offer Tax Cuts to Encourage Long-Term Lending by Banks

The Finance minister of Brazil, Guido Mantega has just informed that foreign-based companies operating ...

Ahmadinejad’s Provocation in Brazil: US and Israel Have no Courage to Attack Iran

Is Mahmoud Ahmadinejad, the president of Iran, worried about a possible military attack by ...

35 Countries Gather in Brazil to Discuss Grain Storage

Representatives of 35 countries are participating in the 9th International Working Conference on Stored ...

Venezuela in Protest Against US Leaves CAN to Join Brazil in Mercosur

The Andean Nations Community (CAN) secretariat received last weekend Venezuela’s official relinquishment from the ...

After 22-Year Interruption Brazil Resumes Its Nuclear Program

The Lula administration has authorized the resumption of plans to expand Brazil's nuclear power ...