November 2007
The Brazilian
government says huge
new oil reserves
discovered off its
coast could turn the
country into one of
the biggest oil
producers in the
world.
Petrobras,
Brazil's national
oil company, says it
believes the
offshore Tupi field
has between 5bn and
8bn barrels of
recoverable light
oil.
A senior minister
said Brazilian oil
production had the
potential to match
that of Venezuela
and Saudi Arabia.
Petrobras
delivered its
estimate after
analysing test
results.
'New reality'
The
state-controlled
company says the
results show high
productivity for gas
and light oil - the
best quality oil -
which is more
valuable and cheaper
to refine.
Petrobras says
the find has the
potential to move
Brazil into a
position where it is
one of the top ten
oil reserves in the
world.
Brazil currently
has proven oil
reserves of 14
billion barrels,
over half of which
have been discovered
in the past five
years.
The news, which
led to a sharp rise
in company shares,
was also given an
enthusiastic welcome
by the government.
The senior
minister in charge
of the cabinet,
Dilma Rousseff, said
if the deposits
turned out to be as
significant as first
thought, it would
place Brazil in the
same league as
Venezuela and
countries in the
Arab world.
With a reserve
like this, the
country could be
transformed into an
exporter of
petroleum, she said.
"This has changed
our reality," she
said.
Most of Brazil's
oil is heavy and
found at great depth
but even so its
reserves have almost
doubled in the last
ten years, as has
output.
Some analysts say
this latest find
raises the
interesting scenario
of offering a new
source of supply to
the United States,
reducing its
dependence on
Venezuela, a country
with which it has
such a fraught
relationship.
With the Tupi
field potentially
equal to 40% of all
oil ever discovered
here, it seems by
any standards a
significant moment
for Brazil.
"If the best-case
scenario happens,
this discovery would
make Petrobras'
reserves overcome
those of Shell and
Chevron," said
Felipe Cunha, an
analyst with brokers
Brascan.
Petrobras
controls 65% of the
firm which has the
exclusive licence to
explore and extract
oil from the Tupi
field in the Santos
basin, about 180
miles south of Rio
de Janeiro.
British firm BG
and Portugal's Galp
Energia hold
minority stakes in
the business.
Reserves have
also been found in
the more northerly
Campos and Espirito
Santo basins.
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