Posts Tagged ‘bric’

With Brazil making the largest oil finds in the western hemisphere for the last 30 years, the wealth generated for the country will result in a huge redistribution of money, leading to sustained growth in the Brazilian property market.

Finance Minister Edison has stated in the next ten years Brazil will become an oil superpower and based on current projections will have crude oil for export for the next 50 years. This will result in Brazil becoming an important player in international politics.

Finance Minister Edison stated that Brazil would be producing 3.6 million barrels a day by 2017. With domestic demand in Brazil projected at 2.6 million barrels, this would leave a substantial surplus for export. President Lula da Silvas government is also planning to invest heavily into the petrochemical sector, enabling it to sell not just unrefined crude but also lucrative oil derivatives.

The Government owned company, Petrobas, is responsible for the management and exploration of oil and gas in the country. The company has been recently ranked eighth in the world by market value by the leading accountants, Ernst & Young.

In 2008 Petrobras was valued at a highly-respectable $95.9 billion, placing it in 37th place in the global arena. However, the recent finds, coupled with major technology advances, have caused market value to almost double to $164.8 billion.

Yet another find was announced this month in Brazil’s Santos Basin. The find was made following the drilling of a fourth well in the BM-S-9 block off the south-eastern coast. This provided more good news for Petrobras as well as the British Gas group and Spanish-owned Repsol, who are working in conjunction with Petrobras to drill the block.

This was not the only find that week in the region, as a previous deposit discovered just a few days earlier is believed to hold between 1.2 and 2 billion barrels of oil and gas. Exact figures on how far the new discovery will extend existing reserves are yet to be announced.

Petrobras CEO Jose Sergio Gabrielli said that the company will no longer invest overseas as the company will concentrate on its primary role to develop all of the recently discovered offshore oil reserves.

President Lula da Silvas government is proposing assigning the dominant role in Brazils petroleum industry to Petrobras in a move to increase control over the energy sector. This is currently being debated in Congress.

The Government will give Petrobas operator status for all the oil and gas finds and will serve as the commercial outlet for sales of all oil derivatives, both domestic and international. There are also plans to create another state-owned company called, Petrosal, to manage the Governments oil and gas assets. Analysts predict that this company could eventually grow larger than Petrobas.

The latest developments in the petroleum sector have provided a huge boost to Brazils prospects of becoming a leading oil producer. We are in a fantastic moment, Jose Sergio Gabrielli, Petrobras chief executive, said on Monday.

This article was written by Ginny Naish the Marketing Director of Property Dreams Brazil, a real estate consultancy based in Joao Pessoa, Paraiba. Property Dreams Brazil can provide consultancy services with regard to investment property, land acquisition, re-location and real estate marketing. Please visit Property Dreams Brazil for further information.