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New Find Places Brazil on World’s Top 10 Oil Producers List

Brazil Petrobras A Brazilian new find, a huge offshore oil discovery, could raise Brazil's petroleum reserves by a whopping 40% and boost the country into the ranks of the world's major exporters, Brazilian officials said.

The government-controlled oil company Petróleo Brasileiro SA, or Petrobras, said the new "ultra-deep" Tupi field could hold as much as 8 billion barrels of recoverable light crude, sending Petrobras shares soaring and prompting predictions that Brazil could join the world's "top 10" oil producers.

Petrobras President Sergio Gabrielli said Thursday the oil from ultradeep areas, including the Tupi field, would give Brazil the world's eighth-largest oil and gas reserves.

"Brazil's reserves will lie somewhere between those of Nigeria and those of Venezuela," Gabrielli said at a news conference.

Petrobras says the Tupi field, off Brazil's southeastern Atlantic coast, has between 5 billion and 8 billion barrels – equivalent to 40% of all the oil ever discovered in Brazil.

Brazil's total oil reserves currently rank 17th in the world, with 14.4 billion barrels of oil equivalent, Gabrielli said.

News of the discovery rocked a country that became a net oil exporter only last year but must still import light crude oil for the refined products it needs. Brazil produces – and exports – mostly heavy crude oil, which has to be mixed with the light oil in refineries.

Petrobras' American depository shares jumped US$ 24.03 to US$ 116.77 on the New York Stock Exchange to close at a 52-week high. In Brazil, Petrobras shares ended 14.1% higher Thursday at 80.17 reais (US$ 45.94) in the São Paulo's stock exchange, the Bovespa.

"If this is confirmed, we will no longer be a 'medium' country, pursuing self-sufficiency and exporting a little. It will transform the nation to another level, with exporting properties like Venezuela, Arab nations and others," said Dilma Rousseff, presidential chief of staff.

For a country that went deeply into debt buying foreign oil in the 1970s and '80s, "this has changed our reality," she said.

Rousseff also announced that Brazil was withdrawing 41 blocks of underwater territory from an auction of 312 prospective oil blocks to be held this month. The country still will put the remaining 261 blocks up for auction but will reserve the most promising areas around the Tupi field for itself.

The Tupi field lies under 2,140 meters (7,060 feet) of water, more than 3,000 meters (almost 10,000 feet) of sand and rocks, and then another 2,000-meter (6,600-foot) thick layer of salt. The company drilled test wells that lie under 2,166 meters (7,100 feet) of water, 286 kilometers (177 miles) south of Rio de Janeiro.

Getting that oil out of the earth's crust is a formidable challenge, but most of Brazil's oil lies off its Atlantic coast, and Petrobras has become a global leader in ultradeep offshore oil extraction.

Felipe Cunha, an oil analyst with the São Paulo-based brokerage Brascan, said the Tupi field guarantees Brazil's oil output will continue to grow.

"If the best-case scenario happens, this discovery would make Petrobras' reserves overcome those of Shell and Chevron and put Petrobras behind only Exxon and British Petroleum," Cunha said.

Petrobras has a 65% operating stake in the field, Britain's BG Group PLC holds 25%, and Petroleos de Portugal holds the remaining 10%.

Mercopress

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  • Show Comments (12)

  • João da Silva

    Jon
    [quote]It is alleged though that Ch.C. provides invaluable economic advice to this group!![/quote]

    Ch.c is becoming more and more important as the hours go by!!!

    btw, where the heck is he, in Caracas?

  • jon

    Chavez
    Joao,

    Chavez the the head of a Bilderberg splinter faction but sadly the only member as Raul Castro told him to buzz-off. It is alleged though that Ch.C. provides invaluable economic advice to this group!!

  • bo

    it may be 3.65 in SF…but the national average is around 3.15

  • bo

    [quote]Brazil Brasilia $3.12 [/quote]

    that’s horseshit! One gallon is 3.8 litres! Gasoline here in Brazil is 2.60 reais per litre. That’s 9.88 reais per gallon! Which today is $5.81 per gallon! That is nearly double the price in the U.S.

  • João da Silva

    [quote]Bo,

    I think Chavez sells gas at 14 cents per US gallon[/quote]

    Jon, is Chavez the head of the Bilderberg group? The bloggers will be interested in hearing your final conclusions 😀

  • Jony

    Now the list is complete with the US included.
    Bo, I think your math is as good as our friend Chc?

    Nation City Price in USD Regular/Gallon

    Netherlands Amsterdam $6.48
    Norway Oslo $6.27
    Italy Milan $5.96
    Denmark Copenhagen $5.93
    Belgium Brussels $5.91
    Sweden Stockholm $5.80
    United Kingdom London $5.79
    Germany Frankfurt $5.57
    France Paris $5.54
    Portugal Lisbon $5.35
    Hungary Budapest $4.94
    Luxembourg $4.82
    Croatia Zagreb $4.81
    Ireland Dublin $4.78
    Switzerland Geneva $4.74
    Spain Madrid $4.55
    Japan Tokyo $4.24
    Czech Republic Prague $4.19
    Romania Bucharest $4.09
    Andorra $4.08
    San Francisco California $3.65
    Estonia Tallinn $3.62
    Bulgaria Sofia $3.52
    Brazil Brasilia $3.12
    Cuba Havana $3.03
    Taiwan Taipei $2.84
    Lebanon Beirut $2.63
    South Africa Johannesburg $2.62
    Nicaragua Managua $2.61
    Panama Panama City $2.19
    Russia Moscow $2.10
    Puerto Rico San Juan $1.74
    Saudi Arabia Riyadh $0.91
    Kuwait Kuwait City $0.78
    Egypt Cairo $0.65
    Nigeria Lagos $0.38
    Venezuela Caracas $0.12

    Source: air-inc.com

  • jon

    Bo,

    Not sure how recent this article is, but puts things into perspective. Government policy, taxes, profit taking, kick backs to the politicos, whatever…..in some countries the small guy wins and in others he loses

    Gas prices around the world

    Think you pay a lot for gas? Perhaps you’d prefer to live in Venezuela.

    NEW YORK (CNN/Money) ・Gasoline prices in the United States, which have recently hit record highs, are actually much lower than in many countries. Drivers in some European cities, like Amsterdam and Oslo, are paying nearly 3 times more than those in the U.S.

    The main factor in price disparities between countries is government policy, according to AirInc, a company that tracks the cost of living in various places around the world. Many European nations tax gasoline heavily, with taxes making up as much as 75 percent of the cost of a gallon of gasoline, said a spokesperson for AirInc.

    In a few Latin America and Middle-East nations, such as Venezuela and Saudi Arabia, oil is produced by a government-owned company and local gasoline prices are kept low as a benefit to the nation’s citizens, he said. All prices updated March, 2005.

    Nation City Price in USD Regular/Gallon
    Netherlands Amsterdam $6.48
    Norway Oslo $6.27
    Italy Milan $5.96
    Denmark Copenhagen $5.93
    Belgium Brussels $5.91
    Sweden Stockholm $5.80
    United Kingdom London $5.79
    Germany Frankfurt $5.57
    France Paris $5.54
    Portugal Lisbon $5.35
    Hungary Budapest $4.94
    Luxembourg $4.82
    Croatia Zagreb $4.81
    Ireland Dublin $4.78
    Switzerland Geneva $4.74
    Spain Madrid $4.55
    Japan Tokyo $4.24
    Czech Republic Prague $4.19
    Romania Bucharest $4.09
    Andorra $4.08
    Estonia Tallinn $3.62
    Bulgaria Sofia $3.52
    Brazil Brasilia $3.12
    Cuba Havana $3.03
    Taiwan Taipei $2.84
    Lebanon Beirut $2.63
    South Africa Johannesburg $2.62
    Nicaragua Managua $2.61
    Panama Panama City $2.19
    Russia Moscow $2.10
    Puerto Rico San Juan $1.74
    Saudi Arabia Riyadh $0.91
    Kuwait Kuwait City $0.78
    Egypt Cairo $0.65
    Nigeria Lagos $0.38
    Venezuela Caracas $0.12

    Source: air-inc.com

  • bo

    jon…
    hard for me to believe….but wouldn’t doubt it. My question is why can’t brazil sell for 3 dollars a gallon? That’s 1.27 reais per litre….instead of today’s 2.60 reais per litre!

  • jon

    Bo,

    I think Chavez sells gas at 14 cents per US gallon

  • bo

    Can someone tell me why…..
    gasoline is so expensive here in Brazil? The U.S. produces roughly 4X more oil than Brazil, yet imports more than 50% of the oil they use, and yet the prices at the pump are HALF, or less than half, of the prices at the pump in Brazil. And in a country where the GDP per capita is around 6,000 dollars per year!

    I’m all for Brazil becoming a world power in oil production and exploration, but for the love of god, can’t they pass this on to the consumer?

    If the U.S. can import more than 50% of their oil consumption and sell at half or less than half of a country that is “self sufficient”, what does that tell ya?

  • jon

    oil in the amazon
    The geology sounds about right PET. Ecuador has found oil in its jungles and Boliva has huge gas reserves. I don’t know about the history of Brazil’s oil industry in the Amazon though

  • P.E.T.

    Oil in the Amazon??
    Can anyone tell me if Brazil has attempted any oil exploration in the interior. Seems to me it has the right geology. Imagine all that organic matter that is under the soil.

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