Brazil to Receive Investment from BG Group for Oil Production
by: IncaInvest January 14, 2009
The government of Rio de Janeiro announced that the BG Group, a world leader in natural gas, will invest $4 billion in oil exploration and production in Brazil. The majority of the investment amount will be earmarked for exploration in the oil reserves in the area of Tupi in the Santos Basin, off the coast of Rio de Janeiro and Sao Paulo.
Governor of Rio de Janeiro, Sergio Cabral, received the chairman of the board of the British company, Robert Wilson, and executives of the subsidiary in Brazil yesterday to discuss the possibilities for investment in oil fields in the state of Rio de Janeiro.
According to the government, BG announced the $4 investment over the next 3 years during the meeting. The Secretary of State of Economic Development, Julio Bueno, said the group considers Brazil a country of strategic importance.
Bueno said:
[blockquote]
Today Petrobras’ biggest partner declared that investments represent 25% of the resources to be used in Tupi, to the order of $4 billion. They must also obey Brazilian rules and laws, making these key issues for foreign investment.[/blockquote]
According to the secretary, the directors of the BG Group said they intend to make Rio de Janeiro the base for their development strategies. He said that 85% of industry jobs are in Rio de Janeiro and, soon, a new site for the construction of oil platforms will begin operation. He also said that there are other areas in the state where Petrobras is looking to build platforms.
BG is Petrobras’ main partner in the exploration of the Tupi area, controlling a 25% share of investment. Petrobras holds 65% and the Portuguese company Galp holds 10%.
In recent days, international analysts have been saying that ExxonMobil (XOM), the world’s largest oil company, should seek a partnership with Petrobras in the development of the Tupi area.
