By Pratap John
DOHA: Brazilian oil major Petrobras is keen to tie up with Qatar Petroleum International (QPI) for joint investments in upstream, midstream and downstream hydrocarbon ventures and power projects worldwide. The company is also exploring the possibilities of importing LNG from Qatar on a long-term basis to fuel some Brazilian power plants.
According to Petrobras chief executive officer Jose Gabrielli De Azevedo the company was also keen to bid for some Qatari offshore blocks whenever they were opened for bidding.
Azevedo said Brazil was interested in getting Qatari LNG supplies to run its many hydro-electric power plants mainly during the dry season. The LNG supplies can be diverted to markets in North America and Europe when the Brazilian power plants run on hydel energy.
“We wish we can get some 5mn tonnes of LNG annually from Qatar. We have no commitment from Qatar so far. But we will definitely take up the issue with senior Qatari officials when we meet them in the coming days,” he told Gulf Times here yesterday.
The Petrobras CEO said though Brazil became self-sufficient in oil production last year, it was still importing natural gas from Bolivia. The South American country’s oil production now totals 2.3mn barrels per day. A chunk of this (2.1mn bpd) comes from the Petrobras’ own facilities across the South American country.
By 2010, this will reach 3.5mn bpd and 4.5mn bpd in 2015.
“We are making huge investments to boost our production capacity,” he said.
Brazil produces about 25mn cubic metres per day of natural gas. Almost the same quantity is being pumped through a pipeline from Bolivia on a “take or pay” basis. Petrobras is ramping up its natural gas production capacity manifold.
However, Brazil does not have any LNG production facility as of now. On the other hand the demand for clean sources of energy is steadily rising in the South American country.
Asked whether it made sense for Brazil to lift LNG cargoes from Qatar in view of the huge distance between the two countries he said, “We are closer to you than the United States is.”
The Petrobras CEO said his company would also seek opportunities in oil exploration, offshore Qatar.
“We will certainly try to bid for some Qatari offshore blocks whenever they are open for bidding. We understand some blocks will be open for bidding next year and hope we will be invited,” he said.
Recently, Qatar Petroleum’s director (Oil & Gas Ventures) Saad Sherida al-Kaabi said three blocks - blocks 1, 7 & 8, both onshore and offshore, would be opened for bidding later this year. But they are not in the North Field, he had clarified.
Al-Kaabi had also said two blocks for oil and gas exploration were under bidding now.
Azevedo said Petrobras sought a tie-up with QPI for joint investments in Qatar, Brazil and other countries.
“We now operate in as many as 23 countries. Besides the oil and gas sectors we are also interested in power production, petrochemicals and LNG marketing. Besides South America, we are active in North America, Africa and Asia and has expertise in oil, natural gas, petrochemical and power production,” he said.
Azevedo and his accompanying delegation yesterday called on HE the Deputy Premier Abdullah bin Hamad al-Attiyah, who is also Minister for Energy and Industry, where the possibilities of co-operation between Petrobras and QPI were discussed at the meeting.
The Brazilian delegation also met HE the Minister of State for Energy and Industry Dr Mohamed al-Sada, RasGas managing director Hamad Rashid al-Mohannadi and QPI chief executive officer Nasser al-Jaidah. Brazilian Ambassador Paulo Dyrceu Pinheiro was also present.
The Brazilian delegation will visit the Ras Laffan Industrial City today before leaving for Bahrain.
The Petrobras team comprised Ildo Luis Sauer, director (gas & energy); Demarco Epifanio, new ventures manager (North Africa, Middle East and Asia); and Luiz Antonio Costa Pereira, executive manager (gas & energy – marketing and trading). |
