New Oil Discovery in Brazil May Change Way Petrobras Does Business

Brazzil Magazine covers

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:

You May Also Like

Brazzil Magazine covers

Brazilian Giaffone Stalks the Field at this Sunday’s Indy

The personal histories and accomplishments of Brazilians like Hélio Castroneves, famous for his 2001 ...

Brazzil Magazine covers

Brazil Holds Conference on Chinese Phenomenon

China’s global economic influence and the strategic options open to the Chinese market are ...

Brazzil Magazine covers

Brazilians Start to Stand Up for Their Rights

Brazilians often seem passive in the face of injustice and reluctant to take direct ...

Brazzil Magazine covers

In Brazil, Oldies and Greens Can’t Agree on How to Celebrate the Queen of the Sea

Preparations for the Festival of the Queen of the Sea have already begun in ...

Brazzil Magazine covers

Strong US Treasury Yields Weaken Brazilian Market

Latin American and Brazilian stocks in particular tumbled, as a recent sharp increase in ...

Brazzil Magazine covers

Brazilian TAM Airline Reaches 58% of International and 51% of Domestic Markets

Brazil’s National Civil Aviation Agency (ANAC) announced that TAM Brazilian Airline registered 28.1% growth ...