IBP: Oil, Gas Investments to Total US$100bn in 2007-11
Investments in Brazil's oil and gas sector could total US$100bn in 2007-11, the E&P director of Brazil's oil institute IBP Jonas Fonseca said.
Investments include works in upstream, refining and transport operations, he said.
Federal energy company Petrobras (NYSE: PBR) will invest US$75bn of the total and another 50 companies will together spend US$25bn.
E&P investments are due to total US$52.8bn, including US$40.8bn from Petrobras and US$12bn from private companies, he said.
The projections are based on the minimum programs announced by companies when they signed the concessions for 557 exploration blocks and five field development projects, he said.
Companies that offer bids for 6-8 exploration rights in Brazil must commit to a minimum investment program, including a drill program.
IBP's investment projections are below the US$30bn estimated by Brazil's hydrocarbon regulator ANP. Of that total, ANP estimates that some 86% will go to E&P.
Petrobras has rights to or interests in 418 blocks, according to company data.
The only foreign company producing oil in Brazil is Anglo-Dutch oil company Shell (NYSE: RDS-B) with some 30,000-40,000b/d.
Other foreign companies, including Devon Energy (NYSE: DVN) and Statoil (NYSE: STO), have announced drilling programs and are preparing to start production in coming years.
Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports. Click here for a Free two week trial to our Latin America Oil & Gas information service.
Operates 35 Offshore Rigs
Manages 12 Offshore Rigs
- Brazil Regulator Allows Petrobras To Source Libra Rig Hull From Abroad (Oct 04)
- Exxon's Big Bet on Brazil Oil Could Signal Major Pre-salt Role (Sep 29)
- Exxon Mobil Bets on Brazil, Buys 10 Oil Blocks in Auction (Sep 28)
Company: Statoil more info
Operates 1 Offshore Rigs
- Statoil Takes First Bite Of Solar Market With Brazilian Joint Venture (Oct 04)
- Statoil Charters Last of Largest Oil Tankers to Hold Crude for Asia Buyers (Sep 28)
- Statoil And Partners Plan Output Capacity Expansion At Troll Gas Field (Sep 26)
Company: Devon Energy more info
- Shale Drillers Show Few Signs of Slowing as Profits Expand (Aug 02)
- Devon Energy Trims Full-Year Spending (Aug 01)
- Devon Energy Plans To Divest $1B Assets; Profit Beats (May 02)