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.
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