Brazilian Oil Industry Lacks Specialized Staff and Equipment

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Brazil’s oil and gas sector should receive investment of US$ 100 billion over the next five years, according to João Carlos de Luca, the president of the IPB (Brazilian Institute of Oil and Gas).

De Luca spoke yesterday, September 11, during the opening ceremony of the 13th edition of Rio Oil & Gas Expo and Conference, the largest conference in the sector in Latin America.

According to de Luca, of the total invested, US$ 75 billion will come from state-controlled Brazilian oil giant Petrobras, and the rest will be invested by other private companies in the sector.

The IPB’s chief pointed out, however, that in order to be growth in the oil productive chain in the country, it is necessary to overcome challenges, like the lack of specialized labor and of equipment, which are global difficulties.

The meeting about oil is taking place at Riocentro exhibition center, in the southeastern Brazilian city of Rio de Janeiro and will end on Wednesday (13).

Over the three days of Rio Oil & Gas, 30,000 visitors and 800 exhibitors from 14 countries are expected. Among the exhibitors are great companies in the sector, like Petrobras and Shell, and small sector suppliers.

During the exhibition, business roundtables will be promoted between 200 small and large companies in the business. The fair was opened by Mines and Energy minister, Silas Rondeau, and by Petrobras president, José Sérgio Gabrielli.

Petrobras is investing in exploration and production of gas and oil in Brazil and abroad. The company is also starting to invest in export of excess produce, as this year Brazil became self-sufficient in oil.

Petrobras announced yesterday a US$ 200 million contract to export 550,000 tons of fuel oil to the state-owned energy company of Cyprus. The announcement was made by the Supply director at Petrobras, Paulo Roberto Costa, during the opening of Rio Oil & Gas Expo and Conference.

According to the executive, the contract signed last Friday forecasts the supply of the fuel for one year starting in October.

"This is not the first long-term contract, but it is important because a partnership was established with a European country," he said.

The main theme of the conference in Rio de Janeiro is Brazilian self-sufficiency in oil and current opportunities and challenges for the sector.

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