UK Trade & Investment – Brazil

Renato Cordeiro, Sector Manager – Oil & Gas

Renato 2011

Renato Cordeiro joined the UKTI Team at the British Consulate in Rio de Janeiro in 2007 as the Sector Manager for Energy. Before that he worked for 7 years at Brasil Energy – the premier oil & gas trade magazine in Brazil. He worked there as the Journalist covering subjects principally related to the supply chain and new technologies. Prior to that, he worked at O Globo Newspaper covering subjects related to Infrastructure and Oil & Gas. Renato has a degree in Social Communication and an Executive Post-graduation in Oil & Gas. He has recently concluded a Post-graduation course in International Relations.

Brazil is the largest energy market in South America and has the second largest oil reserves in Latin America (16 billion of oil equivalent) after Venezuela. The country achieved net oil self-sufficiency in April 2006 as production reached 1.88 million barrels of oil per day. Now, Brazil is producing over 2,5 millions barrels a day (boed) and more than 80 percent of the production still comes from the Campos Basin. However, significant new discoveries are being made in the Santos and Espírito Santo basins in the Southeast of the Country.

Specialists estimate that the pre-salt offshore area in Brazil may contain 56 billion barrels of oil. The new big discoveries in this region can make Brazil the 6th largest oil and gas producer in the world. By 2014, exports are projected to reach nearly 1 million bpd, even as refining capacity is expanded to process Brazilian production to meet demand. The rapid growth of investment by Petrobras in all aspects of its E&P and downstream business and the exciting results of deep exploration drilling into pre-salt strata have put Brazil back on the radar screens of many UK Oil and Gas suppliers

The State-run company Petrobras is still the dominant player but the end of state monopoly in 1997 attracted most international oil companies, including Shell, BG, BP, Exxon, Statoil and Chevron. Petrobras plans to invest US$ 236,7 billion under its 2013-2017 Business & Management Plan. OGX is the largest private sector Brazilian company in the Oil industry, with 35 exploratory blocks in Brazil and Colombia. Created in 2007, OGX has already a portfolio of potential resources estimated at 10,8 billion of oil equivalent. Until 2015, OGX will be operating 10 FPSOs and 11 fixed platforms.

The Brazilian companies will be demanding 65 deepwater drilling rigs; 568 supply vessels and 177 production platforms up to 2020. The International Operators are also progressing in Brazil. According to the Brazilian Petroleum Institute, the International companies plan to invest around US$ 42 billion up to 2014.

The British operators are well positioned in Brazil. Since 1998 in Brazil, Shell has invested more than US$ 3 billion only in Exploration & Production (E&P) activity. Shell is the second biggest Oil producer in the country after Petrobras. Present in Brazil since 1994, BG has already invested US$ 5 billion in the country. Recently, BG Group announced that will be investing US$ 30 billion in Brazil up to the end of this decade. Most of the investment is related to Exploration and Production. BG has currently 6 exploratory blocks in Brazil in partnership with Petrobras. The company also announced that will spend US$1.5 billion on a technology centre in Brazil. through 2025.

In 2011, BP acquired Devon Energy do Brasil, which was renamed BP Energy do Brazil, operating the Polvo Field, located in the Campos Basin and currently producing approximately 20,000 barrels of oil per day. Besides the Polvo field, BP acquired 9 other concessions, onshore and offshore, in a variety of geological settings and all at stages of the E&P cycle: exploration, appraisal, development and production. In 2012, BP Energy do Brasil acquired 4 additional concessions in the Brazilian equatorial margin, becoming one of the largest concessionaires in Brazil.

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