Statoil Eyes Brazilian Gas Market

Norway's Statoil (NYSE: STO) plans to enter the gas production market in Brazil, according to company managing director Jorge Camargo.

"Statoil is one of Europe's biggest gas suppliers. Gas is one of Statoil's core competencies. For this reason, we plan on entering the Brazilian gas market," Camargo told BNamericas.

However, the executive did not mention any specific plans or gas project for Brazil.

Camargo said the company is making its first steps in ethanol.

"Statoil is still learning about energy generated by ethanol. We already offer ethanol in our products at some of our service stations in Europe," said the executive.


Statoil has so far participated in all oil exploration auctions in Brazil, Camargo said.

"Statoil will perform a technical analysis of the areas to be offered by oil and gas regulator ANP to decide whether or not to take part in round 9," he said.

The company operates two blocks in Camamu basin and owns blocks operated by partners in the Campos, Espírito Santo and Jequitinhonha basins in Brazil.

Camargo said his company fully supports national development of the Brazilian oil services industry.

"This for two reasons: first, a strong, diversified and competitive local industry increases the competitiveness of the Brazilian upstream projects; and second, the more jobs we create, the more social and economic spin-offs we generate and the better will be our freedom to operate in Brazil," Camargo said during the Latin Upstream Conference in Rio de Janeiro.

Camargo is also chairman of the Brazilian Institute of Petroleum's (IBP) E&P steering committee.

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