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

Foreign Investors Romancing Brazil’s Cattle Breeding Business

Foreigners wish to participate in the growth of Brazil’s beef exports. Last week, a ...

Brazil and the Bully

I hope that the new totalitarian mentality in the US does not translate into ...

Brazil’s Richest Man Pays US$ 285,000 in Charity Auction for Lula’s Suit

Eike Batista, the wealthiest man in Brazil, paid the equivalent of US$ 285,000 for ...

President Lula at a pilot biodiesel plant in Brazil

Brazil’s Lula Visits Bush for Ethanol and World Trade Talks

Brazilian President, Luiz Inácio Lula da Silva, announced this Monday, March 26, in Brazil, ...

Brazil’s Position Prevents Consensus on Summit of the Americas

Negotiations on whether to revitalize talks on a hemispheric free trade zone dragged on ...

Paraguay Retaliates Against Brazilian Tariffs

The Paraguayan government announced that it will apply tariff related measures on imports from ...

Brazil’s Quota Foes Conveniently Forget US Affirmative Action’s 40-Year Success

Late last month, in the same week when the Federal University of Rio Grande ...

All Guarani Indians Want Is that Brazil’s Justice Minister Abides by the Law

The Campaign for the Demarcation of Brazil’s Morro dos Cavalos Indigenous Land was launched ...

30 Years of Movies and History in Brazil Land

To celebrate the 30th anniversary of the Mostra Internacional de Cinema em São Paulo ...

Brazil's health fair Hospitalar

World’s Second Largest Health Fair Brings 30 Countries to Brazil

The Brazilian minister of Health, José Gomes Temporão, said in the southeastern Brazilian city ...