Brazil Selling 200,000 Oil Barrels a Day Overseas

Brazilian president Lula and Petrobras chief José Sérgio Gabrielli For two years now, Petrobras has been expanding its foreign sales of oil and derivatives. Presently, daily sales by the Brazilian state-owned oil company total approximately 200,000 barrels of oil and derivatives. The information was supplied by the director of Supply and Refinement at Petrobras, Paulo Roberto Costa.

"Those are products that we buy and sell in the foreign market without them even passing through Brazil." In his assessment, by acting as a trading company, Petrobras is seeking to climb positions and gain strength in the global oil market, taking advantage of market niches in which it can profit.

"The initiative is in keeping with our intention to operate with growing strength in the domestic market, thus verticalizing our position. We are making use of the business opportunities that emerge."

According to him, this is common practice among the world's leading oil companies. "We have been to the BP [British Petroleum] headquarters, where they have an entire store with approximately 200 people in front of computers and doing nothing but buying and selling oil and derivatives," he asserted.

Besides being and advantageous business, according to the director at Petrobras, the operation of the state-owned company in the derivatives sales segment will serve to provide the company with even greater credibility and better positioning.

"The activity gives us market positioning, makes us even better known, and gives us credibility – and trustworthiness is a very important asset in a market in which those who are buying want reassurance that they are going to receive the product," he stated.

In order to accelerate the process of intensifying activities, Petrobras is establishing offices in several countries in Europe, Central America and Asia.

More Oil

Petrobras informed that oil was discovered in deep water at the PM-S-21 block in the Santos Basin. The company is in charge of operating the block, with a 80% share in a consortium with Portuguese company Galp Energia.

The discovery was made in an exploratory well 280 kilometers (174 miles) away from the coast of the southeastern Brazilian state of São Paulo, with a water layer depth of 2,234 meters (7,329 feet). According to Petrobras, the National Petroleum Agency (ANP) was already notified of the discovery, as the regulation demands.

The company informed that the discovery was proven by means of traces of oil and profile interpretation in reservoirs located at depths of approximately 1,000 meters (3,281 feet). The company has not disclosed the potential or the initial production of the well.

This is the second discovery announced by Petrobras in the pre-salt layer of the Santos Basin. Some weeks ago, the company had already announced the discovery of the Tupi mega field, which contains estimated reserves of 8 billion barrels of oil and gas equivalent.

The pre-salt layer is comprised of reservoir-rocks located underneath a large layer of salt, ranging from the coast of the state of Espí­rito Santo (in the Southeast) to Santa Catarina (South), with over 800 kilometers (497 miles) of length and up to 200 kilometers (124 miles) of width, at depths ranging from 1,500 to 3,000 meters (4,921 to 9,842 feet) under water, and 3,000 to 4,000 meters (9,842 to 13,123 feet) underground.



  • Show Comments (5)

  • ch.c.

    Continued….mostly for Shelly !!!
    and hopefully you realize that despite Brazil is “apparently” energy self sufficient……Brazil energy is around TWICE MORE EXPENSIVE THAN IN AMERICA !!!!! While in Veneuela the price is a very very very small fraction than the price in Brazil !

    Guess now what will be the Brazilian gas stations prices….if world oil price double or triple again !!!!!!!!

    No doubt that such a high price would be still acceptable and affordable for wealthy nations, but no so much for poorer emerging nations citizens such as India, China and…….Brazil !

    Ohhhh and if that would the case, just think about your UNsmart “visionaries” who have accumulated trillions of US$ in their foreign exchange reserves.
    The US$ currency will be even less valuable than ….TODAY ! Resulting in even far larger currencies losses than… TODAY !

    I am not as skeptical as you are : I turned bullish on the US$….on November 20, 2007 !!!!!

  • ch.c.

    To OK DUMBASS JUNKIE and Shelly ChÀƒ©rie !
    1) they sell oil not like exon and chevron they export.
    Of course they do. Just read again : “Those are products that we buy and sell in the foreign market without them even passing through Brazil.”
    What else does Exxon and Chevron ?????? Do you think they buy and sell only what they produce ? OF COURSE NOT !!!!!

    2) For Shelly : do you really believe that Exxon and Chevron buy and or produce oil sold only in AMERICA ?????? They have gas stations ALL over the world…they need to supply ! They also supply diesel and natural gas to utilities outside
    Come one Shelly….think twice !

    Ohhhhh…and by the way……does both of you know…that Geneva……is one of the world biggest city for trading commodities AND Energy ?????
    Of course…..YOU did not know.
    This simply prove your limited knowledge. But you can find out by yourself….just by surfing the net !
    But you see, WE dont yet pretend to EXPORT oil. We produce none but buy and sell just like Petrobras does “”Those are products that we buy and sell in the foreign market without them even passing through Brazil.”
    I even bet 10 to 1 that in Geneva alone we trade at least 10 times more oil and energy derivatives than Petrobras does.

    And your comments on Venezuela oil sold in America….makes me…LAUGH…LAUGH…AND LAUGH !!!!
    Simply because Venezuela has NO alternative yet to sell its oil elsewhere. WHY ?
    – Most of Venezuela oil is HEAVY oil and need a different refinement process.
    – Venezuela is the majority OWNER of refineries in AMERICA processing its own HEAVY OIL !

    No doubt that if Chavez could stop selling 1 barrel of oil to America, he would do so !
    HIS problems are A) HE CANT (see above) and B) HE would put HIS OWN refineries in
    America…..BANKRUPT !!!!!

    Yesssss…..Chavez is a clown and the brother of other clowns : Mercosur in which Brazil is the Leader !

    You see Shelly…whatever the oil price is…..THERE IS YET……NO SHORTAGE ON THE WORLD MARKET !
    No one is queuing… far !

  • Shelly

    You are not as clever as you think. America is desperate for oil. The new advert here in the US is: “America has a right to buy Venezuela’s oil”. An advert, with a poor little kid that cannot keep her home heated “during THE HOLIDAYS”. What a campaign! Now, my main concern is always obvious, will the profit benefit a few or the population in general? And I mentioned a few months ago about oil off Santos, there are still more to come. I just wish Brazil would invest in education, health and job creation. Invest in alternative fuels, new technology for research etc.

  • ok

    dumbass they sell oil that do not pass through the brazilian market (domestic). they sell oil not like exon and chevron they export.

  • ch.c.

    “”Those are products that we buy and sell in the foreign market without them even passing through Brazil.”
    Thus they are not …..BRAZILIAN….by definition, even if done by a Brazilian company !

    Otherwise AMERICA is selling oil worldwide by the millions of barrels per day, through EXXON,CHEVRON etc if America could also use the statement
    “Those are products that we buy and sell in the foreign market without them even passing through Brazil”

    Quite a misleading headline….on purpose…of course !

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