Rio, 9/29/2003 (Agência Brasil - ABr) - Petrobras will be 50 year old on October 3. The state-controlled oil company is a member of the select group of corporations capable of producing over 2 million barrels of oil, and the equivalent in natural gas, per day. It is one of the world's most proficient ultra-deep drilling companies. The challenge for the next 50 years is to become an integrated energy company.
According to Petrobras director, Ildo Sauer, it was through Petrobras that Brazil proved it could operate a world class company capable of meeting the country's energy needs. "Even more important than the ability to bring oil up from 6,000 meters down, has been the firm's ability to find solutions which resulted in economic and social growth for Brazil," he declared.
Sauer points out that petroleum dominated the energy market in the last century, but that there are other factors which will play a role in the new century. "There is concern with the environment, the climate and how they affect people's lives," he said.
According to Sauer, Brazil is in a privileged position to move ahead in the new scenario. "Brazil has large reserves of hydro-energy, coal, sugarcane-based alcohol and ethanol it can tap on short notice," says the Petrobras director.
When Petrobras began in 1953, it was drilling 2,700 barrels of oil a day and no one was sure if Brazil had significant oil reserves. Today the country has proven reserves of over 11 billion barrels and it is probably the only country in the world where reserves are on the rise. Petrobras provides 90% of Brazil oil needs, and 40% of the demand for natural gas.
Petrobras produces 250,000 barrels of petroluem abroad and is now the world's 12th biggest oil firm. Its annual production levels have risen an average 11% annually for over a decade, compared to a world average of 1%.
The first oil well in Brazil was discovered in Bahia in 1939. The goal today is to reach self-sufficiency by the year 2006, or thereabouts, with domestic production of oil and gas of 2.2 million barrels per day (and another 400,000 per day abroad). That means a 40% increase in present production levels.
In order to reach that goal, Petrobras intends to invest US$34.3 billion between now and 2007. Out of that total, US$29.2 billion will be invested domestically. At the moment, Petrobras has operations abroad in Argentina, Bolivia and Colombia, in South America; in Angola and Nigeria, in Africa; besides Trinidad and Tobago, and the United States.
Petrobras has won the Offshore Tecnology Conference award for ultra-deep drilling twice. It is presently the world champion with a well at 1,874 meters.
The corporation is also a stalwart part of the Brazilian economy, paying some R$28 billion during the first half of this year in taxes, charges and royalties. It pays royalties in 15 states to 820 municipalities. (AB)
