Shells Gets Go Ahead to Export Brazilian Oil

According to Brazilian daily newspaper, O Estado de Sao Paulo, Shell has been granted permission to export Brazilian oil in competition with Petrobras. The authorization allows the company to export oil from its field in the Campos Basin.

Shell has made six discoveries with reserves totaling 330 million barrels of oil and has plans to begin producing some 70,000 barrels of crude per day within the concession area it shares with Petrobras.

This will mark the first time the multinational, which has been distributing fuel in Brazil for 90 years, has produced oil on Brazilian territory. Shell would also become the first foreign oil company in decades to export Brazilian crude.

The Brazilian oil industry, which was monopolized by Petrobras for almost half a century, was opened up to foreign investment six years ago. Most foreign companies that acquired production rights in Brazil are still in the exploration stage.