Private sector to invest US$ 34 billion in the Country until 2013
Gazeta Mercantil 04/14/2009
Private companies operating in the area of oil and natural gas in Brazil should invest US$ 34 billion in the Country from this year to 2013, according to the estimate of the Brazilian Institute of Oil (IBP), which represents the companies of the sector. The number was announced by the president of the IBP, João Carlos de Luca, yesterday, and it is added to the volume of investments foreseen by Petrobras, of US$ 174 billion for the same period. The officer did not disclose data for comparison with other periods, but he affirmed the number represents an increase in the investments. "Because of the pre-salt area alone we already have a fairly significant growth", he declared.
The president of the IBP said the private sector defends the current systems of public tenders for new areas of exploration, in order to guarantee future investments, and he affirmed he is not concerned about the delay in the definition of a new regulatory landmark for the sector. According to him, there are no reasons for radical changes that depend on parliamentary authorizations. "We understand the pre-salt is a major wealth, but there is no zero risk in the pre-salt. Investments will be required". The Brazilian government may announce the changes to the bidding rules related to the pre-salt area still this semester. However, according to analysts, the decisions on the fate of the petroliferous areas, initially expected to be concluded by September, 2008, have been postponed due to the current financial crisis. According to them, there are no resources nor enough refining capacity to develop the extensive pre-salt area of the basin of Santos.