Brazil’s oil industry has not been the source of much good news recently but this week might just go down as one of its best yet.
On Monday, the country’s state-run giant Petrobras managed to raise $11bn in the biggest emerging markets bond issue ever. Then on Tuesday the country pulled in a record R$2.8bn ($1.4bn) in its first auction of licences for oil exploration blocks in five years. Continue reading »
As beyondbrics’ São Paulo team looks out from its office over a city darkened by Apocalypse-like walls of thunder clouds unleashing hail on the commuters below, the nation’s latest challenge seems bizarre to say the least.
A hot, apparently dry, summer is leading to speculation that the nation will have to resort to energy rationing for the first time since 2001. Scant rainfall is drying up the country’s hydropower plants, which provide the bulk of its energy, while increased use of air-conditioners to cope with the heat is sapping whatever output there is.
As a result, Brazil may have to increase usage of its fossil-fuel fired plants. Continue reading »
Brazil’s government came out with the long-awaited announcement on Tuesday that it would auction another round of oil exploration rights next year.
Most importantly, there will be two auctions, energy minister Edison Lobao said. A first round of 174 blocks, many of which are expected to be in the Equatorial Margin, a potentially interesting new offshore area in the country’s north, near the mouth of the Amazon River. This will be offered under the country’s oil concession law that allows the successful bidder to operate the field. Continue reading »