[lbo-talk] Brazil's Petrobras mulls Caspian oil exploration with Iran

uvj at vsnl.com uvj at vsnl.com
Sun Aug 21 10:42:39 PDT 2005


Reuters.com

Petrobras mulls Caspian oil exploration with Iran

Wed Aug 17, 2005

RIO DE JANEIRO, Brazil, Aug 17 (Reuters) - Brazil's state oil company Petrobras is in talks with Iranian authorities for possible oil exploration in the Caspian Sea, the company's President Jose Sergio Gabrielli said on Wednesday.

Gabrielli said, however, no firm deal was in sight for the moment and Petrobras was focusing on exploration works at the Tousan block in the Gulf, where it entered last year.

"We are having conversations about Caspian oil ... We are in Iran and we have strategic adherence to developing relations, associations that would allow for an offshore expansion," Gabrielli told Reuters in an interview.

Asked whether Petrobras saw any risk in growing in Iran at a moment when the Middle Eastern country may face international sanctions or even use of force over its nuclear program, Gabrielli said there were no particular concerns about that.

"We are not alone in Iran, there are also various American and European oil companies there with us. We are treating it as any (risk) that the oil industry is treating," he said.

Gabrielli said also Petrobras continued to bet strongly on an increase in its Nigerian output and was increasing its investment in the Gulf of Mexico, where it is actively exploring for oil and gas in the ultra-deep waters.

"We don't have production as yet, but very good exploration results and growth prospects ... it's for about three years from now," Gabrielli said.

Further away from Brazil, Petrobras is seeking to expand its first export contract with China, sealed last month and calling for 12 million barrels of heavy Marlim crude deliveries to China's Sinochem International Oil Company.

"We do want to expand this deal, but it doesn't depend only on us," he said.

Closer to home, in Venezuela, Petrobras is discussing with the state oil company PDVSA an expansion of offshore oil exploration and production.

Petrobras' Argentine-based foreign unit Petrobras Energia also expects to increase its oil output and activities in Venezuela by switching to new production-sharing joint venture deals with PDVSA.

© Reuters 2005. All Rights Reserved.



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