Energy corporations will invest US$ 133 billion in the next ten years looking for oil and gas in Brazil according to a release from the country's Ministry of Mines and Energy. The plan, according to official sources, seeks to balance economic growth prospects with energy supply and expanded demand.
The Ten Year Energy Expansion Plan, 2007/2016, which has Brazil's government controlled Petrobras as the main investor, is undergoing a "public opinion consultation" process before becoming effective next July 20, when President Luiz Inácio Lula da Silva stamps his signature.
The Lula administration argues that the Brazilian economy has begun an unparalleled growth cycle above 5%, with low inflation and promises that the sustained expansion "will last decades" and ensures there will be no "energy shortages" for domestic and foreign investors.
Brazil is determined to maintain "oil self sufficiency," an objective which was achieved in the last twelve months.
Investment in hydrocarbons exploration and production is estimated between US$ 108 billion and US$ 133 billion of which 46 to 55 billion correspond to corporations affiliates. Petrobras' share is estimated in 43 billion according to the company's business road map. Most of the investment is scheduled to concentrate in the 2012/2016 period, with an estimated 62 to 79 billion US dollars.
Brazil's target for 2015 is almost 3 million bpd; production currently stands at 1.9 million bpd
Regarding natural gas the target is to keep current annual production of 35 billion cubic meters until 2011 (96 million cubic meters per day) when output is expected to increase by 30% with the incorporation of new fields.
Some of the international corporations operating in Brazil include Repsol/YPF; Shell; Statoil; Chevron and BP, which have won tenders to explore and extract oil and gas offshore and on Brazilian territory.