Brazil’s Petrobras to Invest US$ 18 Billion to Produce Gas

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In the next ten years Petrobras will invest around US$ 18 billion on the expansion of natural gas production in the Santos Basin, according to the president of the Brazilian government-run oil giant, José Sérgio Gabrielli.

"For this to occur, however, we will have to have ships available to locate various sounding rigs in the area. This is essential," Gabrielli emphasized, Monday, May 22, in a speech to entrepreneurs at the British Chamber of Commerce and Industry (BRITCHAM).

According to the executive, the company is assuming that daily production in the Santos Basin will increase 1.5 million cubic meters by 2008, when production in the region is expected to make a quantum leap.

Last week Petrobras announced that in two years it will increase daily natural gas supplies from domestic sources by 24.8 million cubic meters.

The gas will be extracted from fields in Espí­rito Santo (16.7 million cubic meters), Rio de Janeiro (6 million), and São Paulo (1.5 million). The country’s current production of natural gas amounts to around 15 million cubic meters daily. With the growth in extraction, the country will attain self-sufficiency in gas supplies.

According to Gabrielli, the new supplies will mainly be destined for the Southeast region. 70% of the gas currently consumed by states in the region, such as São Paulo, is imported from Bolivia, which earlier this month nationalized its reserves.

Agência Brasil

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