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Brazil
Basic Political Developments
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According to a Brazilian daily, new Cuban President Raul Castro has asked for
help from Brazilian President Luiz Inacio "Lula" da Silva during his transition
to power on the island.
The leaders of Brazil and Argentina will hold talks this week on defense,
nuclear energy and other topics, according to the Brazilian government Feb.
20.
National Economic Trends
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Brazil’s real strengthened Feb. 20 due to foreign investment inflows.
Business, Energy or Environmental regulations or discussions
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Lawmakers from the world's major industrial nations and five emerging
economies are gathering in Brazil beginning Feb. 20 to discuss a global
climate change treaty currently under consideration.
Brazil's government is studying a public offering of up to 49% of shares from
the government-owned Infraero airport administration authority, Brazilian
Defense Minister Nelson Jobim said late Feb. 19, according to the Estado
news agency.
A mob of 2,000 people burned tires, blocked roads and attacked federal
agents who sought to crack down on illegal Amazon logging, but officials
vowed Feb. 20 that riots would not halt law enforcement.
Activity in the Oil and Gas sector (including regulatory)
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Brazil at the end of 2007 had 12.623 billion barrels in proven oil reserves, the
National Petroleum Agency, said on its Web site late Feb. 19.
Insufficient supply of natural gas and brownouts could hit Brazil and
Argentina, according to a Feb. 20 report. The reduced supply is due to
Bolivia’s inability to meet its contractual obligations.
Brazil reiterated Feb. 20 its objection to any reduction in the volume of
natural gas it receives from Bolivia.
Petrobras
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Petrobras announced late Feb. 19 that it is forming a joint venture with
Japan’s Mitsui & Co. and Brazilian builder Camargo Correa to construct the
world's first ethanol-only pipeline. The pipeline, with an annual capacity of 12
million cubic meters of biofuel, will transport ethanol from western Brazil to
the port of Sao Sebastiao on Brazil’s Atlantic coast. In addition, the pipeline
will be linked with an existing pipeline that leads to a Petrobras ethanol export
port in Rio de Janiero. Petrobras said it will open the pipeline for the transport
of ethanol by private companies.
Petrobras bought its first cargoes of light sweet crudes to supply the Nansei
Sekiyu KK refinery in Japan, in which it will take a controlling stake in March,
sources close to the deals said Feb. 20.
A Feb. 19 report indicates that Petrobras' domestic oil and natural gas liquids
production in January 2008 was 1.826 million barrels per day (bpd), down 1.5
percent from December 2007 when the company produced 1.855 million bpd
in Brazil.
-----------------------------------------------------------------------------------------Basic Political Developments
http://www.tiemposdelmundo.com/Politica/2008/02/20/diario_brasileo_dice_que_ral
_castro_pidi_ayuda_a_brasil_para_transicin/7533/
Diario brasileño dice que Raúl Castro pidió ayuda a Brasil para transición
Published: feb. 20, 2008 at 9:11 AM
SAO PAULO, feb. 20 (UPI) -- El matutino Folha dijo este miércoles que el gobernante
cubano Raúl Castro le pidió ayuda al presidente Luiz Inácio Lula da Silva para la
transición en la isla.
Según el matutino, Castro aseguró a Lula que deseaba acelerar el proceso de
cambios políticos y económicos en Cuba para lo cual Brasil seria un aliado más
conveniente que Venezuela para esta tarea, de acuerdo a la columna del
comentarista Kennedy Alentar.
En el poder desde julio del 2006, cuando Fidel Castro se separó "temporalmente" del
poder, Raúl le pidió ayuda a Lula para incrementar la inversión extranjera en su país
y mejorar las relaciones con Europa y Estados Unidos, especialmente para terminar
con el bloqueo de la isla.
Folha dijo que "en palabras" de un ministro, Brasil es uno de los pocos países del
mundo que está en condiciones de dialogar por igual con el régimen cubano, con
Hugo Chávez y con Washington. Agregó que Raúl Castro ve en Lula una posibilidad
de distanciarse un poco de Chávez.
National Economic Trends
http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=8a8e2a4b-76ab4ebe-a9f7-b66554dd073a
Brazil's Real Strengthens On Investment Inflows
Wed, Feb 20 2008, 18:42 GMT
SAO PAULO (Dow Jones)--The Brazilian real strengthened against the U.S. dollar late
in trading Wednesday on foreign investor inflows.
As of 1830 GMT, the real was trading at BRL1.729 per dollar, stronger against the
Tuesday close of BRL1.733.
Traders said investors were attracted by the prospect of gains in the Brazilian stock
market and in fixed-income investments. Brazil's Selic base interest rate remains
high at 11.25%.
Business, Energy or Environmental regulations or discussions
http://www.reuters.com/article/latestCrisis/idUSN18615540
Lawmakers gather in Brazil to discuss climate change
Tue Feb 19, 2008 5:20pm EST
WASHINGTON, Feb 19 (Reuters) - Lawmakers from the world's major industrial
nations and five emerging economies gather in Brazil from Wednesday to discuss a
global climate change treaty currently under consideration.
This will be the first gathering of legislators from wealthy and developing countries to
help shape the post Kyoto Protocol agreement, World Bank Vice President for Latin
America, Pamela Cox, told Reuters.
"Legislators are more than just another voice," Cox said. "In many countries they are
the ones that actually sponsor and enact the laws that may govern any future
climate change agenda," she added.
Cox, who will attend the conference in Brasilia, said reducing the carbon emissions
that cause climate change requires a global solution.
"It is such an important global issue that it can't be a bilateral discussion, you need
to engage society across the board," she said. "I don't think there has been any
other sort of initiative or event like this."
The meeting of 100 lawmakers includes the Group of Eight industrial countries -Britain, the United States, France, Germany, Italy, Russia, Canada and Japan -- and
fast-developing nations China, Brazil, India, South Africa and Mexico.
The Kyoto Protocol was aimed at traditionally industrial powers and their emissions
and did not target emerging and developing economies such as China and India. The
post Kyoto treaty being negotiated will include all nations to ensure cuts in all forms
of greenhouse gas emissions.
Brazil's concerned its involvement in a multilateral treaty will undermine its
sovereignty over its Amazon rainforest region. Yet it is the world's fourth largest
producer of greenhouse gases, virtually all of it as a result of deforestation.
PROTECTING FORESTS
The World Bank is leading efforts to develop private-sector and other solutions to
curb greenhouse gas emissions, including those that emanate from deforestation.
In October, the Bank said it was developing a Forest Carbon Partnership Facility that
would provide financial incentives to countries for protecting and replanting tropical
forests, which store huge amounts of carbon that causes climate change.
Deforestation contributes 20 percent of total greenhouse gas emissions, more than
all the world's cars, trucks, trains and airplanes combined. By creating economic
value for tropical forests, the facility can help developing nations like Brazil generate
new revenue for poverty alleviation.
Brazilian President Luiz Inacio Lula da Silva is expected to address the conference.
He has argued that rich countries are responsible for 60 percent of the gas emissions
and therefore need to shoulder the responsibility.
Brazil, like other developing nations, is also worried that solutions to climate change
could hamper economic development.
"Both sides need more understanding of each other's point of view because it's a
global issue and we are all in this together," Cox said. "These countries need to be
seen as full partners. It isn't just who pays but who plays, and we're expecting the
G8 will pay and these middle-income countries will play and we need to figure out
how that will work out," she added.
Cox said it was important to balance development and environmental needs.
"We would like to help on the debate but also to put the development focus into the
debate. It isn't an either/or," she said. "While money is helpful, it is also important
that they have a voice in the process, that they feel heard, that their interests are
respected. If you don't do that you won't have a long-run sustainable solution," she
added.
http://online.wsj.com/article/BT-CO-20080220-706633.html
Brazil Mulling Public Offer Of Infraero Airport Co - Estado
February 20, 2008 7:50 a.m.
BRASILIA (Dow Jones)--Brazil's government is studying a public offering of up to
49% of shares from the government-owned Infraero airport administration authority,
Brazilian Defense Minister Nelson Jobim said late Tuesday, according to the Estado
news agency.
Jobim said the country's BNDES national development bank would be designated to
devise a restructuring plan for Infraero before a share offer could be made.
"Restructuring the company is a condition for listing it publicly," he said. "But
independent of any listing, restructuring must be done to make the company more
efficient."
One of the hurdles to listing Infraero, Jobim said, is that the assets it manages are
currently owned by the federal government.
Late last week, Brazil's government announced it would privatize the planned Sao
Goncalo do Amarante international airport in the country's northeastern city of Natal.
The airport is budgeted to cost $560 million and is projected to be among the largest
in Latin America upon its scheduled completion in 2010.
Jobim Tuesday described the proposed ownership model for the Natal airport as
"interesting," and said it could be repeated for the construction of other airports in
Brazil.
http://www.iht.com/articles/ap/2008/02/20/america/LA-GEN-Brazil-AmazonProtest.php
Brazil mob attacks anti-logging agents in Amazon region
The Associated Press
Wednesday, February 20, 2008
RIO DE JANEIRO, Brazil: A mob of 2,000 people burned tires, blocked roads and
attacked federal agents who sought to crack down on illegal Amazon logging, but
officials vowed Wednesday that riots would not halt law enforcement.
Brazil's Environmental Protection Agency abandoned efforts to audit logging
companies and sawmills suspected of illegal logging on Tuesday after mobs
surrounded its workers and tried to invade a sawmill in a "public revolt" in the
Amazonian town of Tailandia, the agency said on its Web site.
Many of the rioters work in the area's saw mills, which could suffer as a result of the
inspections. Sawmill owners provoked unrest by threatening to fire workers
questioned by officials, the environmental agency said.
But the government pledged Wednesday to resume its so-called "Guardians of the
Amazon" crackdown on the illegal logging in the world's biggest rain forest, said
Flavio Montiel, director of the environmental agency.
The crackdown began last week, when 130 environmental workers began inspecting
Tailandia's estimated 140 sawmills. Of 10 mills audited, five were fined for stocking
lumber of unknown origin and for selling lumber without authorization, the
environmental agency said.
It seized 13,000 cubic meters (17,003 cubic yards) of illegal lumber, including top
Brazilian hardwoods — enough to fill 640 trucks, the agency said.
But inspectors were surprised Tuesday by "an enraged mob" that blocked roads and
forced them to flee under the protection of 70 police officers. Gunfire broke out, but
no injuries were reported, the agency said.
Protesters held signs proclaiming: "We are workers. We want to work."
Activity in the Oil and Gas sector (including regulatory)
http://online.wsj.com/article/BT-CO-20080220-709732.html
Brazil's 2007 Proven Oil Reserves Reach 12.623B Barrels - ANP
February 20, 2008 10:06 a.m.
RIO DE JANEIRO (Dow Jones)--Brazil at the end of 2007 had 12.623 billion barrels in
proven oil reserves, the National Petroleum Agency, or ANP, said on its Web site late
Tuesday.
The country also had 364.99 billion cubic meters of natural gas reserves, the ANP
said.
The ANP calculates reserves both from Brazil's state-run oil firm Petroleo Brasileiro
SA (PBR), or Petrobras, and private oil companies such as Royal Dutch Shell Plc.
(RDSA) or Devon Oil Corp. (DVN).
Petrobras in January said that it had proven oil reserves at the end of 2007 of 9.138
billion barrels, if calculated according to the strict criteria of the U.S. Securities and
Exchange Commission, or SEC.
The ANP also included reserves from fields that are currently being developed, while
the SEC demands, among other requirements, that oil companies have firm oil sale
contracts for new fields to be considered company reserves.
Recently announced massive oil reserves at Petrobras' ultradeep Tupi field in Brazil's
Santos Basin neither count toward Brazil's nor toward Petrobras' reserves yet.
Petrobras in November had estimated reserves at Tupi at up to 8 billion barrels of oil
equivalent.
Including probable reserves, the ANP sees Brazil's total oil reserves at the end of
2007 at 16.888 billion barrels, and gas reserves at 369.96 billion cubic meters.
http://www.mercopress.com/vernoticia.do?id=12672&formato=HTML
Insufficient gas and brownouts could hit Brazil and Argentina
Brazil reiterated it does not have the capacity to give up a percentage of the
contracted Bolivian gas provision thus helping to improve the Argentine energy
situation.
“The formula is very simple: there’s a contract to sell gas to Brazil and Brazil can’t
drop that commitment”, said Foreign Affairs minister Celso Amorim in advance of
next Saturday’s presidential summit in Buenos Aires when the leaders of Brazil,
Argentina and Bolivia are scheduled to address the gas supply issue.
However Amorim brushed aside any possibility that such a stance could create
bilateral conflicts between Brazil and Argentina.
President Lula da Silva will make an official visit to Argentina next Friday when he
will meet Cristina Fernandez de Kirchner and on Saturday both will hold energy talks
with Bolivian president Evo Morales.
The key issue is how to ensure a greater supply of Bolivian gas for Argentina in the
coming winter when demand is expected to soar, but Bolivia is not yet ready to
increase production.
Brazil takes an average 30 million cubic meters per day of Bolivian gas and Argentina
has a contract for 7.7 million cmd, although the demand currently stands at 3.3
million cubic meters per day.
Bolivia’s current natural gas production is in the range of 40 million cubic meters and
is expected to increase to 42 million in the coming twelve months as investments
advance, but foreign demand by then could have reached 46 million cc according to
private estimates.
Amorim said that as long as the Brazilian domestic supply is ensured, “we will try to
aid Argentina in the framework of the integration spirit”, but underlined that it’s a
priority for Brazil that Bolivia honors the agreed volumes.
Last week Bolivian vice president Alvaro Garcia Linera during a visit to Brazil said
that the current provision of gas is guaranteed, however any increase in supply to
Argentina will depend on a three way negotiation.
The success of such a negotiation apparently hinges on Brazil’s willingness to cede
but Amorim was plain clear, “we have great difficulties in dropping what is in the
contract terms”, at least currently.
Observers have been warning for some time that Brazil faces electricity shortages as
early as this year but rationing is among the government’s worst nightmares.
The previous administration of Henrique Fernando Cardoso was booted out by the
electorate in 2002 largely because that year’s rationing –a result of low rainfall and
poor management – branded it as “blackout government”.
The Lula da Silva administration has insisted that that rationing is not a option but
industry thinks otherwise.
Rowe Michels and colleagues at Bear Stearns in New York recently issued a report
showing that “a perfect storm of four worst-case scenarios” could force the
government to ration supplies as early as May this year.
Conspiring together are shortages of natural gas, especially from Bolivia, a fasterthan-expected rate of growth in demand; unusually low rainfall since the rainy
season failed to get underway in November; and delays in delivering new generating
capacity.
In fact the report concludes rationing has already arrived in the form of high prices
for those large industrial users who buy electricity on short-term contracts and who
account for a quarter of electricity use in Brazil.
Prices hit the permitted ceiling last month, forcing some users such as aluminum
smelters to shut down part of their capacity.
http://www.lostiempos.com/noticias/20-02-08/20_02_08_ultimas_eco8.php
Brasil rechaza reducción de gas boliviano.
20-02-2008 - 15:21 h.
Brasil reitera su objeción a la rebaja del volumen de gas natural que Petrobras
compra de Bolivia, por lo que la posición será ratificada en la Cumbre trinacional,
convocada para este sábado en Buenos Aires, sin embargo, la propuesta será ayudar
a la Argentina en la provisión de otras fuentes energéticas.
Así lo corroboró este miércoles, el portavoz de la Presidencia del vecino país, Marcelo
Baumbach, al puntualizar: "No podemos abrir la mano", porque "es una necesidad
brasileña y de nuestro mercado interno", dejando claramente establecido: "Nuestras
necesidades internas, vienen en primer lugar".
También, remarcó que su país "está convencido de que es necesario que sea
cumplida la meta contratada en términos de suministro de gas", el contrato GSA
entre Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) y Petrobras compromete 30
millones de metros cúbicos por día (MCD), además, del volumen necesario para el
transporte del energético entre Río Grande y Porto Alegre.
En declaraciones divulgadas por Agencia Brasil, el portavoz brasileño informó que el
presidente Luiz Inácio Lula da Silva viajará este jueves a Buenos Aires, justamente,
para dialogar con sus colegas de Argentina, Cristina Fernández de Kirchner, y de
Bolivia, Evo Morales, tanto por separado como en conjunto.
IMPOSIBILIDAD BOLIVIANA:
El actual nivel de producción del energético fósil menos contaminante llega a 41,3
millones de metros cúbicos por día, que son consumidos en su totalidad, puesto que
31 millones se envían a Brasil, contrato YPFB-GSA, 5 millones consume el mercado
interno, 3,3 millones a la Argentina, y para la producción de la totalidad de los
campos y el transporte se emplean los 2 millones restantes, de acuerdo con datos
oficiales.
Esta igualdad es perfecta, pero peligrosa, puesto que por cualquier suspensión o por
mantenimiento en los campos, el sistema de recolección y transporte, YPFB recorta
el volumen a la Argentina y el riesgo aumentará en invierno, coinciden en el
gobierno nacional, los técnicos petroleros y analistas en Bolivia.
Ante esta evidente y reconocida insuficiencia de gas boliviano, el gobierno nacional
busca opciones para aumentar el volumen de gas enviado a la Argentina, que en
este mes osciló entre menos de un millón y tres millones de metros cúbicos por día
(MCD), con un volumen mínimo de 816.000 el 7 de febrero y 4,58 millones el 17, de
acuerdo con los datos de recepción en ese país.
COOPERANDO CON ARGENTINA:
El vocero de la Presidencia de Brasil aseguró que todavía no hay ninguna propuesta
concreta para cooperar con Argentina en la provisión de energía, por lo que la
administración Da Silva debe discutir las formas de apoyar, como ocurrió en el
pasado que se suministró energía eléctrica.
Justamente, la escasez de fuentes energéticas para Argentina es motivo de
preocupación para el gobierno de Evo Morales, por lo que está procurando convencer
a su similar brasileño que instruya a Petrobras que reduzca la nominación de gas,
sobre todo en invierno. Este cálculo político tiene la finalidad de liberar a YPFB de las
multas pecuniarias acordadas en el GSA.
"Brasil está dispuesto a dialogar de manera constructiva, como tiene dialogado", si
embargo, "eso no quiere decir que podamos renunciar a los volúmenes que fueron
acordados, pero significa que pueden ser estudiadas maneras de ayudar a la
Argentina como el año pasado, con el suministro de energía eléctrica", puntualizó el
vocero brasileño.
En ese marco, Brasil propondrá a la Argentina acciones inmediatas para tratar de
paliar la limitación energética que enfrenta y que se agravarán en invierno, debido,
al incremento del consumo de gas natural.
En tanto que en el país, el ministro de Hidrocarburos, Carlos Villegas, en días
pasados persistió en que serán los Presidentes de Bolivia, Brasil y Argentina quienes
decidirán los volúmenes de gas nacional que se destinarán a cada país comprador.
Petrobras
http://money.cnn.com/news/newsfeeds/articles/djhighlights/200802201000DOWJON
ESDJONLINE000564.htm
Brazil Petrobras, Mitsui Form Ethanol Pipeline Joint Venture
February 20, 2008: 10:00 AM EST
RIO DE JANEIRO -(Dow Jones)- Brazilian state-run oil firm Petroleo Brasileiro SA
(PBR) is forming a joint venture with Mitsui & Co. Ltd. (MITSY) and Brazilian builder
Camargo Correa SA to build the world's first ethanol-only pipeline, Petrobras said in
a press release late Tuesday.
The pipeline will transport the biofuel from the town of Senador Canedo in the
western state of Goias to the Atlantic coast harbor of Sao Sebastiao in Sao Paulo
state.
The pipeline will have the capacity to transport 12 million cubic meters of ethanol a
year, Petrobras said. The company has said the pipeline will carry ethanol that is
mainly destined for exports to countries such as Japan.
The main stretch of the pipeline will pass through Paulinia near Sao Paulo, where
Petrobras has a large refinery. It will have a branch linking it to the Tiete-Parana
channel, which the company also wants to use for ethanol transport.
The pipeline will also be linked to an existing pipeline from Sao Paulo state to the city
of Rio de Janeiro, where Petrobras has a port for exporting ethanol. That pipeline
currently is used to transport both oil and ethanol, but will also become an ethanolonly pipeline, Petrobras said.
Petrobras said it will open the pipeline to ethanol transportation by private
companies.
http://money.ninemsn.com.au/article.aspx?id=382331
Petrobras buys 1st crude cargoes for Japan refinery
SINGAPORE, Feb 20 (Reuters) - Brazil's state-run Petrobras bought its first cargoes
of light sweet crudes to feed the Nansei Sekiyu KK refinery in Japan, in which it will
take a controlling stake in March, sources close to the deals said on Wednesday.
The major producer purchased a 650,000-barrel cargo of Australian Cossack crude
from Japanese trader Mitsubishi for April loading, at a premium of around $1.00 a
barrel to Tapis APPI, traders added.
It also bought an April cargo of Saharan Blend crude from Algerian state-owned
Sonatrach, which rents storage tanks in South Korea. Price details and volumes had
yet to emerge.
Petrobras , which accounts for nearly all of the nearly 2 million barrels per day (bpd)
of crude oil produced in Brazil, is a rare buyer in Asia, where it usually sells crude,
mainly to China.
A source at Petrobras declined to comment on the deals.
It was not yet clear whether or not Petrobras would step into the market regularly to
buy crude for the refinery.
"This (purchase) is during the transition of the Exxon sale of their equity," said a
trader close to the discussions.
Petrobras bought ExxonMobil 87.5 percent stake in the 100,000-bpd Nansei Sekiyu
plant last year and the deal will be finalised next month, marking its first investment
in an Asian refinery, as it looks to expand worldwide to secure new outlets for its
crude.
Japan's Sumitomo Corp <8053.T> owns the remaining 12.5 percent in Nansei
Sekiyu, which is based in southern Okinawa island, and the two companies are still
discussing future supplies for the facility.
Brazil mainly produces heavy sour crude but the refinery is geared towards lighter
grades.
Petrobras and Sumitomo are planning a $900 million upgrade of the refinery by end2010, Sumitomo said last November, which would allow the plant to process more of
Brazil's rising output.
http://www.energycurrent.com/index.php?id=2&storyid=8955
Petrobras' Brazilian production drops
2/19/2008 10:06:10 PM GMT
BRAZIL: Petrobras' domestic oil and natural gas liquids production in January was
1.826 million b/d, down 1.5 percent from December when the company produced
1.855 million b/d in Brazil. Petrobras said the variation was due to the transfer of
floating production, storage and offloading vessel Seillean from the Golfinho field in
the Espirito Santo Basin to the Marlim Lests field in the Campos Basin, plus the
maintenance shutdown of the Xaréu-Atum pipeline.
As for non-liquid natural gas production in Brazil, Petrobras produced 1.748 Bcf/d in
January, which was an increase of one percent from December's 1.731 Bcf/d. The
company chalked up the difference to the market.
For all production outside of Brazil, Petrobras produced 121,683 b/d of oil and
natural gas liquids in January, which is nearly the same as the 121,957 b/d produced
in December. The company produced 632.157 MMcf/d of non-liquid natural gas
outside of Brazil in January, up 3.6 percent from December's 611.509 MMcf/d.
Petrobras said the decrease was mainly due to an increase in production in
Argentina.