Petrobras, the national oil company of Brazil has announced( January 2009) plans for investment of 174 billion dollars in the period 2009-13 in exploration and production of its newly discovered oil fields. The scale of investment is a confirmation of the emerging new status of Brazil as a major oil producer in the region and in the world.
production in 2008 was 2.18 million barrels per day and the target is 3.31 million by 2013 and 5.1 million by 2020.
Oil reserves in the new fields discovered in 2007 are said to be 100 billion barrels. The current level of proven reserves is 14 billion barrels.
This development is of direct interest to India and Indian business. We have been importing crude oil from Brazil for the last 4-5 years regularly.This can increase in the years to come and Brazil could be a regular source in Latin America besides venezuela, mexico and ecuador.
ONGC Videsh Ltd ( OVL) has already acquired some oil concessions in Brazil and has invested around a billion dollars.
Brazil has one of the best technologies and expertise for deep sea exploration and production.
Reliance which has been importing crude oil from Brazil has also been exporting diesel oil to Brazil regularly. In 2008 their exports of diesel oil was around 1.8 billion dollars, half of our total exports to Brazil last year. This is likey to continue for some more years since Brazilian refining capacity does not yet match its crude production or requirement of refined products.
More immediately, the massive Brazilian investment in the oil sector offers opportunities for our companies to supply equipments and machinery to the new projects.