Govt: Brazil Needs to Produce 5Mb/d by 2030

Brazil will need to produce 5Mb/d of oil by 2030 to sustain self-sufficiency, according to the country's 25-year national energy plan that will be unveiled this year, mines and energy minister Silas Rondeau announced.

The 2030 energy plan is due on President Luiz Inacio Lula da Silva's desk in mid-December, said Rondeau, who was speaking during the 8th hydrocarbons round in Rio de Janeiro on Tuesday.

"The president's guideline is helping the country grow and the formula starts with energy [supply]," said Rondeau.

The country produces some 1.9Mb/d, thanks largely to Brazil's federal energy company Petrobras (NYSE: PBR). Petrobras aims to produce 2.8Mb/d in 2015, according to its long-term strategic plan.

Brazil's proven reserves are roughly 13Bboe. The country announced self-sufficiency in oil in the first half of 2006.

In his reelection campaign, Lula promised to introduce measures to help boost economic activity past the 2-3% average GDP growth in the past decade. This would result in increased demand for energy and fuels.

According to the government's projections, energy consumption could double to some 577 million tonnes (Mt) equivalent of oil by 2015, up from some 219Mt equivalent of oil in 2006, said Rondeau.

The country will have to rely on several fuel sources, including natural gas. As such, Petrobras is implementing a US$22bn program to increase output in the southeastern region to some 40Mm3/d by 2009 from 15Mm3/d, he said.

"The 8th round is part of the effort to increase local gas supply," he said.

The program also includes the start of operations of two re-gasification terminals by 2009 to import 20Mm3/d of LNG.

National energy policy council CNPE has labeled the program as a top priority.

"Everything is on schedule, but the CNPE resolution allows Petrobras and other investors to take measures to speed up the projects if needed," he said.

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