Brazil to Become Oil Self-Sufficient by the End of 2005

Brazilian petroleum output should be enough by the end of 2005 to meet the country´s demand reported in Brasilia Jose Sergio Gabrielli, CEO of Petrobras, Brazil´s state-owned oil corporation.

Mr. Gabrielli said Petrobras output (domestic and overseas) will reach a daily production of 2.231million BOE barrels per day and “will be able to sustain that level, and even above, for many years to come. The level of developed reserves should remain stable for at least the next twenty years”.

Petrobras is currently developing new reserves and expanding production as part of a 56 billion US dollars 2006/10 investment plan announced last August.

“By 2010 Petrobras is estimated will have a daily production of 3.4 million barrels, equivalent to Mexico´s current output”, indicated Mr. Gabrielli who nevertheless added that even with self sufficiency Brazil will continue to import oil because domestic production is mostly heavy crude and the company´s refineries operate mostly with lighter oil.

Petrobras August domestic production of oil and natural gas is 1.96 million BOE bpd which represents 10,6% over August 2004 but 2.8% less that last July. International oil and natural gas production from eight countries with Petrobras operations totaled 263.834 BOE bpd, a slight 0,7% increase over last month, with Bolivia and Venezuela compensating output contractions Ecuador and United States.

Mr. Gabrielli also announced that the company´s subsidiary, Petrobras America had discovered offshore high quality natural gas reserves at its Garden 244 block in the Gulf of Mexico. Gas was struck at a water depth of 640 metres and the well should be producing by early 2007.

The Brazilian oil company has plans to invest 1,5 billion US dollars in the next five years in the Gulf of Mexico to reach an output target of 100.000 bpd in 2010.