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Brazil Says No to Iran Invitation to Join OPEC

OPEP The Brazilian government has turned down a formal invitation by Iran for Brazil to join the Organization of Petroleum Exporting Countries (OPEC) it was reported by the official Iranian news agency, IRNA.

"I received the ambassador of Iran, and he invited Brazil to become part of OPEC. It was not a suggestion but a formal invitation," Brazil's Energy Minister Edison Lobão said in a news conference in Brasí­lia, this Wednesday, September 3.

But Lobão said he has told the Iranian envoy Moshen Shaterzadeh in the meeting two weeks ago that Brazil "does not envisage that possibility," right now according to Brazilian media reports.

For Adriano Pires, director of the Brazilian Center of Infra-Structure accepting Iran invitation would not be advantageous for Brazil. "OPEC's member countries," Pires said, "have political regimes and economic development that I don't wish for Brazil," mentioning countries like Venezuela, Angola and Nigeria. He also argued that the OPEC countries have no free markets and oil there is exploited by state monopolies.

"Even if Brazil turns into a large oil producer and exporter in the future I see no advantage in joining such organization." Pires reminded that the OPEP rules only work when oil prices are high. "When prices fall, the members themselves ignore the quotas created by them."

In November 2007 Brazil announced that it had discovered a new oil field 250 kilometers offshore that could contain up to eight billion barrels of oil.

Earlier this year it said that other nearby oilfields could contain another 40 billion barrels of light crude oil in the so called sub salt layer over 5.000 meters below the sea bed.

Brazil's proven oil reserves currently stands at 14 billion barrels but if testing confirm the claims, Brazil will be propelled to the same level as OPEC members Nigeria or even Venezuela.

In related news Energy minister Lobão said Brazil will hold two auctions of onshore oilfields in December. One of them involves 171 blocks in Round 10 on December 18. Brazil's national petroleum agency, known as ANP, will sell another 13 onshore fields as part of the third round of mature fields' auction on December 2.

Brazil's government also decided it won't schedule auctions of offshore oil properties because there is a lack of equipment necessary to expand exploration, Lobão said

"We concentrated (on including blocks) where it is easy to explore" said the minister adding that the government was "careful to avoid including anything offshore" in the auction.

The Brazilian government suspended all auctions of so-called sub-salt offshore blocks in late 2007 and is considering a reform of the regulatory framework for exploration and production in these areas to raise the state's share of revenues from the promising deep-water fields.

The roughly 800 km long by 200 km wide sub-salt band off Brazil's coast extends from Santa Catarina to Espí­rito Santo states.

Mercopress/Bzz

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  • Show Comments (15)

  • dnbaiacu

    Is He Really?…..
    [quote](the idiotic President of Brazil[/quote]

    Sometimes it does make you wonder?…Let’s give him the benefit of the doubt and say he is a great actor 😉

  • dnbaiacu

    No real Communist Ally , yet highly likely global enemy, (manufactured or real)
    [quote]OPEC is future trouble or on the “other side” of the revived “Cold War” spectrum.
    [/quote]
    And this is highly unlikely CONSIDERING who the members of OPEC are. And THAT considering the “Cold War” is being revived.

  • dnbaiacu

    Brazil knows better…..
    And it was even sillier for OPEC to extend the invitation.
    OPEC is future trouble or on the “other side” of the revived “Cold War” spectrum. Give Brazil SOME credit. Not as if they could join OPEC IF they wanted to. The same UNKNOWN entity that is behind the Eurozone, UnaSur and the future North American Union is what Brazil has to answer to.
    OPEC ? NOT! 😉

  • AUGUSTUS

    JOAO
    A reply was sent last night…

  • João da Silva

    [quote]CHC better watch out on WEDNESDAY with the machine (operating underneath Geneva) will be turned on [/quote]

    Alas, Ch.c is the one who financed this project and he is going to be in Morocco on Wednesday!!

    btw, I sent you another e-mail, a few minutes ago. 😉

  • AUGUSTUS

    Dnb! the ultimate scientific info – THE GOD PARTICLE // The Latest scientific developement = CERN & LHC
    Dnb, dear boy, I’m repeating the info here, since you may no longer visit the other thread… Yet, I had you in mind while reading this article, which contains and addresses the essence of the only things I could believe ==> Empirical Data based on Scientific Research
    The machine is the $10 billion Large Hadron Collider, or LHC À¢€” the most powerful, most expensive particle-blaster ever invented. On Wednesday, Europe’s CERN particle-physics lab is due to start shooting beams of protons through the LHC’s 17-mile-round (27-kilometer-round) ring of tunnels beneath the French-Swiss border
    CHC better watch out on WEDNESDAY with the machine (operating underneath Geneva) will be turned on

    LINK ==> http://www.msnbc.msn.com/id/24525554

  • João da Silva

    [quote]Let’s give him the benefit of the doubt and say he is a great actor [/quote]

    Not only a great actor, but also a first rate salesman. 😉

  • AUGUSTUS

    DELIGHTED WITH OPEC’S REJECTED INVITATION
    The news brought me not only pleasure but also relief that “some wisdom” exists in Brasilia despite so many former (recent) blunders!
    The previous bloggers (and the article) provided the necessary justifications. I fully support all of the previous views above.
    Hopefully, there will be consistency in this important diplomatic and politico-economic (wise) decision, and no further revision will be contemplated (considering that the idiotic President of Brazil has repeatedly express his view that Brazil should joint OPEC)

  • The Guest

    There is no need for Brazil to join OPEC an organization which is becoming irrelevant as more non member countries step up their oil production, plus the yearly membership fee is best spent on education in Brazil.

  • moody et al

    Think outside of the greedy little OPEC box.
    A logical absurdity. . .I was thinking more of $99 instead of $112. . .a year ago oil was $30 a barrel. . .what great event determined that oil should be $150. . .speculators. . .it was the ability to buy a futures contract with little financial risk. . .that and the evironmentalist entrenched industry in America. . .but with the promise of off shore Gulf and Atlantic Floridian shelf drilling, as well as Palin’s pipeline and drilling in Alaska and the massive investment in natural gas and natural gas pipeline. . .the price of gas will be between $89 and $115 according to Bloomberg’s Singapore’s bureau interview with the economic banking minister of China. It is better to sell 10,000,000 barrels at $99 than to sell 5,000,000 at $110. What is the real cost of a barrel of oil out of the ground $5. So it is better to make $950,000,000 profit then $550,000,000. What is the diplomatic and economic good will worth? It is Chinese wisdom to help your customer in difficult times, not to step on their neck and take every dime you can, merely because you can. Where is the intelligence in creating resentment in your customer, of weakening your customer? It is the nature of business to be cyclical, it is wise to invest in the next cycle. Give the world discounted oil, make it up in iron ore, soy or chicken. You better sell what you can when you can at the price you can and invest it in infrastructure, before your government renationalizes Petrobras in the name of some humanistic socialized Ponzi scheme and instead of being oil rich you find yourself oil poor.

  • João da Silva

    [quote]Brazil should sell at whatever price at whatever volume, now. . .raise the price later once you have established the customer base over time, a beneficient diplomacy of petro trade. . .you can buy from anybody; the EU has made a tragic mistake partnering with the Russian Bear. Chavez is equally duplicious. These are people that cannot keep a contract.[/quote]

    Great suggestion and I am sure Sergio would appreciate it. So we sell our oil for $30/Barrel and Ethanol for $18. You are a great diplomat, Moody.

  • moody et al

    Brazil should sell at whatever price at whatever volume, now. . .raise the price later once you have established the customer base over time, a beneficient diplomacy of petro trade. . .you can buy from anybody; the EU has made a tragic mistake partnering with the Russian Bear. Chavez is equally duplicious. These are people that cannot keep a contract.

  • forrest allen brown

    all in the price fixen
    like the debears company if you control the sorce and price
    ev ery one has to come to you and you tell them what they will
    have to pay .

    but if you have 2 O peckers then you can bragen at the price .

    brazil , should move to open up its own with other countries
    and under cut the opec nations oil hold .
    BVBEA

  • moody et al

    It is the NEED for oil not the arbitrary price of it that determines its consumption. China will subsidize any price. OPEC is irrelevant, at $10 or $20 oil maybe they were useful, but at $100 they are as useless as tits on a boar. Nobody is going to tell anybody whom they can sell too and at what price. It is a sellers market.

  • ….

    Why should the country join after OPEC screwed the country in the 1970’s and ’80’s. Now OPEC is all suddenly buddy-buddy because Brazil has discovered up to 70 Bil. barrels

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