Brazil Reopens Oil Wells Abandoned Due to Low Production

    The situation prevailing in the petroleum sector, with demand in frank expansion and petroleum prices oscillating between US$ 60 and US$ 70 a barrel, may contribute to the emergence of a new segment in this sector in Brazil: that of small and medium-sized producers.

    This is the assessment made by the director-general of the National Petroleum Agency (ANP), Haroldo Lima. He also believes that the crisis in Bolivia may favor the appearance of this segment.

    These are the motives that lead the ANP to predict that the second round of auctions of Inactive Areas will be as successful as the first, when 16 of the 17 areas that were offered were knocked down by private enterprise.

    "We are hopeful that small and medium-sized Brazilian entrepreneurs will wake up to this new activity, since petroleum prices are very high on foreign markets," Lima said in an interview with the Agência Brasil.

    "As a result, even a small quantity of petroleum production can make a difference to small and medium-sized entrepreneurs."

    In the second round of auctions, scheduled to be held today, June 29, the ANP is offering a total of around 300 square kilometers of continental areas in the mature basins of Potiguar, state of Rio Grande do Norte and Espí­rito Santo state and in the basin of Barreirinhas, in Maranhão state, which is practically untapped.

    "The advantage of the areas that are being offered is that whoever wins the bloc will not have to drill wells, which is expensive. The wells and the petroleum are there, and all that is needed is to revitalize the field.

    "It’s a type of production that doesn’t interest large producers but may turn out to be attractive to small and medium-sized ones due to the price of oil on the foreign market," Lima said.

    The ANP director-general observed that the agency held a round of bidding in these areas for the first time in 2005. At the time 17 areas were offered in Bahia and Sergipe, all of them with existing wells that produced in the past but in which production was small. Due to the low return on investment, they were closed by Petrobras and returned to the ANP.

    ABr

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazilian Senator Calls Lula ‘Fat Boozing Rat’

    Brazilian President Luiz Inácio Lula da Silva is already in New York where he ...

    Brazil’s Lula from Victim to Villain

    Brazilian President Luiz Inácio Lula da Silva had hinted what was in store for ...

    Senator Heloísa Helena becomes serious contender in Brazilian presidential election

    Brazil’s Presidential Election May Not be a Walkover for Lula

    President Luiz Inácio Lula da Silva (PT) has been well ahead of his main ...

    US Wants a Sharper Eye on Brazil’s Border

    A report by the US State Department informs that Brazil is cooperating with the ...

    Brazilian belly dance Déborah Valério

    Brazilian Belly Dancer Dances Her Way to the Middle East

    Spreading and teaching the Modern Arabic Dance style in Brazil. This is the aim ...

    Fed Increase Does Not Sway Brazilian Market

    Brazilian and Latin American markets appeared relatively calm amid the latest U.S. rate hike. ...

    Brazilian Indians Want Their Indigenous Identity Recognized

    The Rio Grande do Norte Legislative Assembly held a public hearing June 15 to ...

    Brazil and Mexico Favor Debt Pardon for LatAm. They Just Don’t Want to Pay the Bill.

    The Interamerican Development Bank, IDB, should write off Latinamerica poor countries debt because this ...

    Amazon: A Record to Be Ashamed of

    Producers from the south have invaded the city of Belém, state of Pará, buying ...

    Recorded Live in Brazil, “Symphonic Jobim” Gets a Nod for Grammy

    "Symphonic Jobim," Adventure Music’s two CD set featuring the orchestral music of legendary Brazilian ...