New Oil Discovery in Brazil May Change Way Petrobras Does Business

Petrobras headquarters in Rio de Janeiro, Brazil The international director of the Brazilian state-controlled oil multinational Petrobras, Jorge Zelada, would not comment on the impact of the news disclosed this Monday, April 14, by the director general at the National Petroleum, Natural Gas and Biofuel Agency (ANP), Haroldo Lima, that the company would have discovered another huge oil field in the Santos Basin.

Early today, April 15, however, over breakfast with journalists at the company headquarters, he admitted that the company might re-evaluate its investment plans, should new viable reserves be confirmed.

"Should new discoveries be confirmed in Brazil, then we are going to make an assessment of our portfolio. The company is not segmented, our business portfolio is evaluated as a whole," he declared.

The company has been broadening its foreign investments, and the executive was questioned as to whether the confirmation of new reserves might turn the international growth strategy around, ascribing priority to domestic affairs.

Yesterday, Haroldo Lima stated that according to unofficial data, the field known as Carioca, in the Santos Basin, could contain 33 billion barrels of oil equivalent. Just to have an idea, proven reserves in Brazil currently total 12 billion barrels.

Petrobras has not confirmed the discovery yet, and it informed that further study is needed at the site. The company discovered oil in the field last year, but according to Zelada, other wells must be drilled to determine the exact size of the reserve.

The Petrobras plan forecasts investment of US$ 112 billion until 2012, of which US$ 15 billion would go to international business. Of that amount, according to Zelada, 70% will go to exploration and production, and 25% to refining.

Currently, the company produces 245,000 barrels per day in foreign countries and refines 140,000 barrels per day. Foreign refinement capacity, according to the executive, should total 330,000 barrels per day in 2011.

To give an example of the growing importance of the foreign sector, Zelada claimed that in 2003 Petrobras invested US$ 1 billion abroad, but that the total forecasted for this year is US$ 4 billion.

Anba – www.anba.com.br

Tags:

Ads

You May Also Like

World Social Forum Back in Brazil After India Stint

The creation of a space for groups with common themes to debate ideas is ...

13-Year-Old Case: Brazil Urged to Find Journalist’s Murderer

The murder of a Brazilian journalist still unpunished 13 years after it was committed  ...

Lula and Bush Vow to End World’s Farm Subsidies

President Bush and Brazilian President Luiz Inácio Lula da Silva have pledged to seek ...

Brazil’s Light For All Served 375,000. There Are Another 625,000 In Line.

Since its implantation in 2003, the Light for All Program in Brazil has created ...

Brazil Brings Heavyweights to Davos to Lure Investors

On January 29, around 100 European, American, and Asian investors will attend a meeting ...

FIFA Doesn’t Like Brazil’s Pace in Preparation to Stage the 2014 World Cup

FIFA’s president Sepp Blatter is not hiding his displeasure at the way Brazilian are ...

Low Inflation and High Surplus Warms Up Brazilian Market

Latin American stocks regained some of the ground lost last Friday, when new developments ...

13 Years After 111 Were Killed in Brazil’s Penitentiary No One Is in Jail

A court in São Paulo, Brazil, will hear Wednesday, February 15, the appeal lodged by ...

Brazil’s Electronic Ballot Spreads Throughout Latin America

The election coordenator of the Unit for the Promotion of Democracy at the Organization ...

Will Brazil and Portugal Ever Agree on a Common Language?

Brazil and Portugal have signed a few orthographic (spelling) reform agreements in the past, ...