Brazil intends to become world’s 4th largest oil producer by 2030

RIO DE JANEIRO, BRAZIL – According to the Ministry of Mines and Energy’s Secretary of Petroleum, Natural Gas, and Biofuels José Mauro Coelho, the second stage of the Transfer-of-Rights auction – surplus volume of oil and gas the federal government assigned to Petrobras (PETR4) – which will auction the fields of Sepia and Atapu, is among the most awaited measures.

The auction is expected to be held by the end of this year.

Coelho pointed out that the deep water pre-salt layer is responsible for 73% of national oil production. “In recent years we have seen a declining production from onshore fields and from mature offshore fields but in the post-salt area.” To this end the government is implementing programs to revitalize production and exploration activities in these two areas.

The secretary also mentioned the divestment plan that should open the refining sector in the country. “Market concentration is an obstacle to investment and to new entrants,” he said.

He said Petrobras has committed to sell 8 refinery assets. “The federal government intends to work toward an opening of the market, for more competition, more dynamism, more players, and this obviously has benefits for Brazilian consumers. This competition has the potential to lead to a reduction in prices.”

The secretary also addressed topics such as renewable energy matrixes – Brazil is the world’s 2nd largest biodiesel producer – gasoline prices and the new Gas Law.