Brazil, which became a net oil exporter in 2019, wants to expand its global energy markets footprint – but wants to do so without joining Opec, Bloomberg reports.
The South American nation expects to be among the top-five energy exporters by 2030, and is tapping private investment to boost output, according to Energy and Mines minister Bento Albuquerque, Kallanish Energy learns.
It’s also working on making rules more favorable for investors in upcoming auctions for oil and natural gas licenses, Bloomberg reported.
“The idea is just to increase our production and to participate more in the international oil and gas market,” he said in an interview in New Delhi. “But this is not a plan for Brazil to join Opec or any other association or group of oil and gas producers. We don’t want restrictions, we want to increase our production.”
With Brazil’s output set to significantly expand in the next few years as more of its offshore reserves are drilled, speculation has swirled over whether it will become part of Opec. While President Jair Bolsonaro last year welcomed an informal invitation to join the group, the head of the country’s state-controlled energy company dismissed the idea.
Brazil is open to having discussions with members of Opec on energy-related issues, Albuquerque told Bloomberg. He expects to visit Saudi Arabia later this year.
The Latin American country is seeking feedback from global oil majors to improve participation in upcoming auctions. It wants to increase the share of output from companies other than state-controlled Petroleo Brasileiro SA, aka, Petrobras.
“Petrobras has a lot of oil and lot of areas to exploit, but it doesn’t have enough funds to prospect all these areas,” Albuquerque told Bloomberg. “There’s a limit for Petrobras. For that reason, we want to make it attractive for others to come and do the investment.”
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