Petrobras Gets US$ 18 Bi to Explore Offshore Oil in Southeast Brazil

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Petrobras’s Master Plan for the Development of Natural Gas and Petroleum Production in the Santos Basin provides for investments on the order of US$ 18 billion over the next 10 years on exploration and production activities in the region.

The announcement was made, Wednesday, January 11, in the city of Santos, in the littoral of São Paulo state, by Petrobras president Sérgio Gabrielli.

According to the Plan, beginning in the second half of 2008, daily gas supplies to the market in Southeast Brazil will increase by 12 million cubic meters. Daily volume should grow to around 30 million cubic meters by the end of 2010.

The company’s press office in Rio de Janeiro informed that the expansion of gas supplies to the Southeast will contribute substantially to reducing Brazil’s dependence on imported gas.

Gabrielli also announced the installation of the new Santos Basin Business Unit in the city of Santos. The unit will be responsible for managing the operational side of activities in the region, which has become increasingly important to Petrobras since the recent discoveries of gas and oil, the press office said.

The Santos Basin, which extends from the state of Rio de Janeiro to Florianópolis, capital of Santa Catarina, encompasses an area of 352 thousand square kilometers. Together with its partners, Petrobras possesses 40.6 thousand square kilometers of exploratory concessions in the area, the press office revealed.

Equatorial Guinea

The government of Equatorial Guinea, country located at Western Africa, approved the purchase, by Brazilian oil company, Petrobras, of 50% of a participation in a deepwater oil exploration contract in the Muni River basin.

The consortium, on which Petrobras participates, will be operated by US national Chevron. Although in the future, depending on the findings, the Brazilian company may also operate the business.

Petrobras considers this an "excellent" opportunity to increase its international reserves. Drilling of the first exploratory well is scheduled for this year, and if they find oil, production is expected for the next decade. Petrobras already operates on other four African countries (Nigeria, Tanzania, Angola and Libya).

Agência Brasil

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