Paraguay May Produce First Oil in Mid-2013



BUENOS AIRES - Paraguay could start producing oil as early as the second quarter of next year, according to President Federico Franco.

"Paraguay isn't just going to be a global champion in the production of clean and renewable hydro electricity, rather starting in April, May or June of next year it will join the ranks of oil-producing nations," Mr. Franco said in a statement.

Mr. Franco said preliminary studies by oil exploration firms point to large quantities of high-quality oil in the country's arid hinterland known as the Chaco.

According to Paraguay's government, imports supply virtually all of the landlocked South American country's fuel needs.

Those imports totaled $1.51 billion last year, a 40% increase from 2010, according to a report by the Vice Ministry of Mines and Energy.

The country is a major producer of electricity thanks to its stakes in the Itaipu, Acaray, and Yacyreta hydroelectric dams. Paraguay exports its surplus electricity to Brazil and Argentina.



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.