Dec, 29th
Brazilian oil company Petrobras will launch a tender in January to contract the topside modules for its P-58 and P-62 floating production, storage and offloading units, local reports said.
Contractors will bid to supply Petrobras with the oil treatment, gas treatment, carbon dioxide removal and sulphate removal modules.
The compression and power generation modules were not included in the dispute.
According to a report from Energia Hoje, US conglomerate GE has already submitted the lowest bid for the power generation and compression modules for the two platforms.
The company bid of around $100 million to supply the power generation modules, which was 5% below rival Rolls Royce. Siemens and Dresser Rand were also participating in the tender.
GE also presented the best offer for the platforms’ compression modules with a proposal of $60 million, beating Dresser Rand, MAN Turbo, Siemens and Elliot, Energia Hoje reported.
The two units are being designed along similar lines and each will be capable of handling 180,000 barrels per day of oil and 6 million cubic metres per day of gas.
The P-62 will produce heavy oil on the Roncador field in the Campos basin and is expected to enter into service in 2013.
The P-58 will handle a mix of heavy oil and lighter oil from deeper pre-salt horizons in the Baleia Azul field starting in 2014.
Published: 29 December 2009 | Last updated: 29 December 2009
2009-12-29
Uganda Gives Approval for Oil Exploration in National Game Park
Dec. 29 (Bloomberg) -- Uganda’s National Environment Management Authority approved the exploration of oil in a national game park, said Henry Okello Oryem, the minister of state for internal relations.
The authority cleared the exploration in the Murchison National Park in the country’s northern district of Amuru after it was satisfied that the investors will mitigate environmental damage in the park, the minister said today in an interview in the capital, Kampala.
“The oil isn’t in the area habited by people, but in a game park,” Oryem said. “Nema gave them clearance to explore,” he said, without giving further details.
Tullow Oil Plc, the U.K. explorer with the most licenses in Africa, and Heritage Oil Plc, who are equal partners in Blocks 1 and 3A in Uganda’s Lake Albert, were jointly awarded the Amuru license in 2004, according to Uganda’s Energy Ministry.
The authority cleared the exploration in the Murchison National Park in the country’s northern district of Amuru after it was satisfied that the investors will mitigate environmental damage in the park, the minister said today in an interview in the capital, Kampala.
“The oil isn’t in the area habited by people, but in a game park,” Oryem said. “Nema gave them clearance to explore,” he said, without giving further details.
Tullow Oil Plc, the U.K. explorer with the most licenses in Africa, and Heritage Oil Plc, who are equal partners in Blocks 1 and 3A in Uganda’s Lake Albert, were jointly awarded the Amuru license in 2004, according to Uganda’s Energy Ministry.
Brazil's Petrobras In Ethanol Cooperative Pact With Petrochina
RIO DE JANEIRO -(Dow Jones)- Brazil oil giant Petrobras and its biofuels subsidiary Petrobras Biocombustivel have signed a memorandum of understanding, or MOU,, with China's Petrochina International Co. Ltd. (PTR) to cooperate in the ethanol sector.
Petroleo Brasileiro (PBR, PETR4.BR), or Petrobras, said in a press release Wednesday that it would undertake studies with Petrochina to evaluate the economic and technical feasibility of exporting Brazilian ethanol to China.
The study would take up to 6 months, Petrobras said.
Petrobras said the move comes as large parts of China need to mix ethanol with gasoline and China has insufficient supplies.
Petrobras also said the Chinese were not only seeking Brazilian supplies but may also invest in producing ethanol themselves in Brazil.
-By John Kolodziejski, Dow Jones Newswires;
Petroleo Brasileiro (PBR, PETR4.BR), or Petrobras, said in a press release Wednesday that it would undertake studies with Petrochina to evaluate the economic and technical feasibility of exporting Brazilian ethanol to China.
The study would take up to 6 months, Petrobras said.
Petrobras said the move comes as large parts of China need to mix ethanol with gasoline and China has insufficient supplies.
Petrobras also said the Chinese were not only seeking Brazilian supplies but may also invest in producing ethanol themselves in Brazil.
-By John Kolodziejski, Dow Jones Newswires;
2009-12-24
2009-12-22
Brazil's Camargo preparing bid for Cimpor -
LISBON, Dec 21 (Reuters) - At least one more Brazilian company, Camargo Correa, may bid for Cimpor, Portugal's biggest cement maker, following last Friday's takeover offer from CSN (CSNA3.SA), Portuguese media said on Monday.
The "i" daily cited a source familiar with the situation as saying the Camargo Correa construction conglomerate will seek not more than a third of Cimpor in a "much friendlier approach than that by CSN".
"There are various possibilities, a cash offer or a deal that can involve merging businesses ... The Camargo proposal should be unveiled on Tuesday or Wednesday and it will be a different model from CSN," i quoted the source as saying.
Jornal de Negocios and Diario Economico business newspapers also said Camargo was preparing a bid, which might target a large minority stake rather than all of the company as is being sought by the steelmaker CSN [ID:nLDE5BH0IK].
Cimpor shares, which surged 16 percent on Friday, added 1.6 percent in early trading on Monday to fetch 6.44 euros -- its highest level in nearly two and a half years.
Contacted by Reuters, a Camargo Correa representative in Lisbon said "there is nothing to announce yet".
Other potential bidders mentioned by local media are Brazil's Votorantim conglomerate, Switzerland's Holcim (HOLN.VX) and Mexico's Cemex (CMXCPO.MX).
France's Lafarge (LAFP.PA) owns a 17 percent stake in Cimpor, but analysts see a bid by the world's top cement producer unlikely at the moment as it has been divesting of late after being hard-hit by the global recession. Lafarge has declined to comment on the matter.
The "i" daily cited a source familiar with the situation as saying the Camargo Correa construction conglomerate will seek not more than a third of Cimpor in a "much friendlier approach than that by CSN".
"There are various possibilities, a cash offer or a deal that can involve merging businesses ... The Camargo proposal should be unveiled on Tuesday or Wednesday and it will be a different model from CSN," i quoted the source as saying.
Jornal de Negocios and Diario Economico business newspapers also said Camargo was preparing a bid, which might target a large minority stake rather than all of the company as is being sought by the steelmaker CSN [ID:nLDE5BH0IK].
Cimpor shares, which surged 16 percent on Friday, added 1.6 percent in early trading on Monday to fetch 6.44 euros -- its highest level in nearly two and a half years.
Contacted by Reuters, a Camargo Correa representative in Lisbon said "there is nothing to announce yet".
Other potential bidders mentioned by local media are Brazil's Votorantim conglomerate, Switzerland's Holcim (HOLN.VX) and Mexico's Cemex (CMXCPO.MX).
France's Lafarge (LAFP.PA) owns a 17 percent stake in Cimpor, but analysts see a bid by the world's top cement producer unlikely at the moment as it has been divesting of late after being hard-hit by the global recession. Lafarge has declined to comment on the matter.
Technip, Schlumberger partner on pipe project
French oil services company Technip SA said Thursday it signed an agreement with Schlumberger Ltd. to jointly develop subsea integrity and surveillance capabilities for flexible pipes used in deep offshore oil and gas production.
Flexible pipes are used in offshore drilling to inject fluids and gases, as well as carry oil and gas supplies.
The new agreement extends a partnership between the companies that began in 1998. The deal will first focus on surveillance systems for flexible pipes used in the deep water off Brazil.
"By combining Technip's technical and manufacturing knowledge of flexible pipe with Schlumberger's surveillance technology, a new generation of intelligent flexible pipe will be created," said Alain Marion of Technip.
Terms of the agreement were not disclosed.
Shares of Schlumberger fell $2.31, 3.5 percent, to $64.40 on Thursday.
Flexible pipes are used in offshore drilling to inject fluids and gases, as well as carry oil and gas supplies.
The new agreement extends a partnership between the companies that began in 1998. The deal will first focus on surveillance systems for flexible pipes used in the deep water off Brazil.
"By combining Technip's technical and manufacturing knowledge of flexible pipe with Schlumberger's surveillance technology, a new generation of intelligent flexible pipe will be created," said Alain Marion of Technip.
Terms of the agreement were not disclosed.
Shares of Schlumberger fell $2.31, 3.5 percent, to $64.40 on Thursday.
Taiwan's China Steel to invest in Brazilian iron ore miner
SteelOrbis - On December 18,Taiwan's largest steelmaker China Steel Corp. announced that its board of directors has approved the decision to buy a 0.5 percent stake in Brazilian iron ore producer Namisa SA from Sumitomo Metal Industries and another 0.5 percent in Namisa from Itochu Corp,at a total cost of JPY8.5 billion ($94.17 million),according to reports.
With this move,China Steel seeks to secure overseas iron ore supplies amid expectations that a global recovery will eventually ratchet up demand.
The iron ore project in question is estimated to have a proven reserve of 1.4 billion metric tons. Brazil's Companhia Siderurgica Nacional (CSN) owns a 60 percent stake in Namisa,while other shareholders include Nippon Steel Corp.,JFE Steel Corp.,Kobe Steel Ltd and Nisshin Steel Corp.,all from Japan,as well as South Korea-based steelmaker POSCO.
China Steel,which imports 16 million metric tons of iron ore every year with 71 percent of imports from Australia and about 25 percent from Brazil,expects Namisa to supply 300,000 metric tons of iron ore annually in the initial phase of the investment,while the supply is expected to reach 500,000 metric tons per year in the long term.
The investment deal will be offered to Namisa's shareholders and regulators from Taiwan and Brazil for the necessary approvals.
With this move,China Steel seeks to secure overseas iron ore supplies amid expectations that a global recovery will eventually ratchet up demand.
The iron ore project in question is estimated to have a proven reserve of 1.4 billion metric tons. Brazil's Companhia Siderurgica Nacional (CSN) owns a 60 percent stake in Namisa,while other shareholders include Nippon Steel Corp.,JFE Steel Corp.,Kobe Steel Ltd and Nisshin Steel Corp.,all from Japan,as well as South Korea-based steelmaker POSCO.
China Steel,which imports 16 million metric tons of iron ore every year with 71 percent of imports from Australia and about 25 percent from Brazil,expects Namisa to supply 300,000 metric tons of iron ore annually in the initial phase of the investment,while the supply is expected to reach 500,000 metric tons per year in the long term.
The investment deal will be offered to Namisa's shareholders and regulators from Taiwan and Brazil for the necessary approvals.
Technip Awarded a Feed Contract for a Proposed Floating LNG Unit in Brazil
PARIS--(BUSINESS WIRE)--Regulatory News:
Technip (Paris:TEC), in association with JGC Corp. and Modec Inc., has been awarded by Petrobras a lump sum contract for the front-end engineering design (FEED) of a proposed floating liquefied natural gas unit (FLNG), as part of a design competition. This FLNG project is being conducted by the joint venture formed between Petrobras, BG, Repsol and Galp Energia for the challenging pre-salt reservoirs of the Santos basin offshore Brazil.
This project would be the first FLNG unit in Brazil and is to be designed for a capacity of approximately 2.7 million tons per annum of LNG. A final investment decision on the project will be made by Petrobras once the FEED study and the analysis of other options are completed.
Scheduled to be completed by the end of 2010, the FEED study will be executed in Technip's operating centres in Paris, France and Rio de Janeiro, Brazil. This award is Technip’s second FLNG contract signed in 2009 (a contract with Shell was signed in July) and confirms the Group’s leadership as a major FLNG concept provider in this very promising market.
Technip (Paris:TEC), in association with JGC Corp. and Modec Inc., has been awarded by Petrobras a lump sum contract for the front-end engineering design (FEED) of a proposed floating liquefied natural gas unit (FLNG), as part of a design competition. This FLNG project is being conducted by the joint venture formed between Petrobras, BG, Repsol and Galp Energia for the challenging pre-salt reservoirs of the Santos basin offshore Brazil.
This project would be the first FLNG unit in Brazil and is to be designed for a capacity of approximately 2.7 million tons per annum of LNG. A final investment decision on the project will be made by Petrobras once the FEED study and the analysis of other options are completed.
Scheduled to be completed by the end of 2010, the FEED study will be executed in Technip's operating centres in Paris, France and Rio de Janeiro, Brazil. This award is Technip’s second FLNG contract signed in 2009 (a contract with Shell was signed in July) and confirms the Group’s leadership as a major FLNG concept provider in this very promising market.
Brazil's Petrobras and U.S. Halliburton sign cooperation agreement
RIO DE JANEIRO, Dec. 21 (Xinhua) -- Brazilian oil giant Petrobras and U.S. oilfield service company Halliburton have signed a technological cooperation agreement, Petrobras announced Monday.
The two companies agreed on three projects: studies on contamination of fluids in oil wells, laboratory simulation of well production, and research on solidification of salt and carbon dioxide formations, said Petrobras. Twelve other projects are still under negotiation.
The agreement will last three years, and can be renewed for another three years. Petrobras will invest about 15 million U.S. dollars in the projects, the company said.
The agreement would also include the establishment of a Halliburton technologies and solutions center in 2011. The center, located on Rio de Janeiro's Fundao island, will be the first Halliburton center in South America.
Halliburton's operations manager in Latin America, Cidar Mansilla, said the center will provide a few hundred jobs for Brazilian technicians.
Cooperation between the two companies dates back to the 1960s, when Halliburton helped Petrobras in oil exploration and production in northeast Brazil's Reconcavo basin.
The two companies agreed on three projects: studies on contamination of fluids in oil wells, laboratory simulation of well production, and research on solidification of salt and carbon dioxide formations, said Petrobras. Twelve other projects are still under negotiation.
The agreement will last three years, and can be renewed for another three years. Petrobras will invest about 15 million U.S. dollars in the projects, the company said.
The agreement would also include the establishment of a Halliburton technologies and solutions center in 2011. The center, located on Rio de Janeiro's Fundao island, will be the first Halliburton center in South America.
Halliburton's operations manager in Latin America, Cidar Mansilla, said the center will provide a few hundred jobs for Brazilian technicians.
Cooperation between the two companies dates back to the 1960s, when Halliburton helped Petrobras in oil exploration and production in northeast Brazil's Reconcavo basin.
2009-12-17
Anadarko, Devon Brazil Oil Exploration Success Could Be Short-Lived
RIO DE JANEIRO (Dow Jones)--U.S. oil companies Anadarko Petroleum (APC) and Devon Energy (DVN) have enjoyed a fruitful relationship exploring for oil in Brazil, capped off with a second key discovery Thursday.
The Anadarko-Devon partnership, however, will likely soon be coming to an end. Last month, Oklahoma City-based Devon said that it wanted to divest its international efforts to focus on natural gas projects in the U.S. The sales, expected to be completed in 2010, could generate between $4.5 billion and $7.5 billion in net proceeds.
Anadarko said Thursday that it struck oil for a second time in the subsalt region of Brazil's Campos Basin. The announcement of the find at the Itaipu prospect, combined with the nearby BM-C-30 block's Wahoo and Wahoo 2 finds, should make the company's Brazilian assets more attractive to potential buyers.
Devon holds stakes in seven offshore Brazil exploration blocks, with six holding possible subsalt plays, the company said. The 20 prospects identified containing net unrisked resource potential of 2 billion to 4 billion barrels.
Anadarko has already said that it was interested in buying out partner Devon--but at the right price. Any potential buyers would also have to deal with changes to oil legislation currently under debate in Brazil's congress.
While government officials have pledged to honor existing concession contracts, political disputes over royalties could, in fact, represent changes to contracts involving oil production from the so-called subsalt fields.
The subsalt discoveries were made under a thick layer of salt. The oil lies under more than 2,000 meters of water and a further 5,000 meters under sand, rock and a shifting layer of salt. The primary subsalt region lies in a cluster of blocks in the Santos Basin, off the coasts of Rio de Janeiro and Sao Paulo states.
Thursday's announcement of the Itaipu find represented the second successful discovery Anadarko and Devon have made in the Campos Basin, where more than 85% of Brazil's crude oil is produced.
Itaipu is located in the BM-C-32 block, and the companies found a 240-foot-long column of oil in a reservoir that was 90 feet thick. More important, the reservoir showed similarities to Brazil's first subsalt oil-producing well at the nearby Jubarte field.
Devon operates the block with a 40% share, while Anadarko holds a 33.3% stake. SK Energy holds the remaining 26.7% stake.
The companies plan a sidetrack well and further appraisal drilling at Itaipu in 2010.
Itaipu is about 16 miles north of the Wahoo discovery, which was announced in September 2008. Wahoo is in the Campos Basin's BM-C-30 block. Anadarko is lead operator in the block, with a 30% stake. Devon Energy and EnCana Brasil Petroleo Limitada each hold a 25% share, while SK do Brazil Ltda has a 20% stake.
Anadarko said the consortium was planning a sidetrack at the Wahoo 2 prospect. When the sidetrack is complete, a drillstem test will be conducted at the first Wahoo find. Two additional exploration and appraisal wells are also planned for BM-C-30 in 2010, Anadarko said.
Both the Itaipu and Wahoo discoveries are located near the Jubarte field operated by Brazilian state-run energy giant Petroleo Brasileiro (PBR, PETR4.BR). Jubarte was the site of Brazil's first subsalt oil production in September 2008, when crude was pumped from the 103A well.
While the Campos Basin subsalt prospect don't hold the quantity of oil discovered in the much-ballyhooed Santos Basin, the area does have several advantages. The salt layer is closer to shore and much thinner, and the Campos Basin has a highly developed infrastructure base.
The Anadarko-Devon partnership, however, will likely soon be coming to an end. Last month, Oklahoma City-based Devon said that it wanted to divest its international efforts to focus on natural gas projects in the U.S. The sales, expected to be completed in 2010, could generate between $4.5 billion and $7.5 billion in net proceeds.
Anadarko said Thursday that it struck oil for a second time in the subsalt region of Brazil's Campos Basin. The announcement of the find at the Itaipu prospect, combined with the nearby BM-C-30 block's Wahoo and Wahoo 2 finds, should make the company's Brazilian assets more attractive to potential buyers.
Devon holds stakes in seven offshore Brazil exploration blocks, with six holding possible subsalt plays, the company said. The 20 prospects identified containing net unrisked resource potential of 2 billion to 4 billion barrels.
Anadarko has already said that it was interested in buying out partner Devon--but at the right price. Any potential buyers would also have to deal with changes to oil legislation currently under debate in Brazil's congress.
While government officials have pledged to honor existing concession contracts, political disputes over royalties could, in fact, represent changes to contracts involving oil production from the so-called subsalt fields.
The subsalt discoveries were made under a thick layer of salt. The oil lies under more than 2,000 meters of water and a further 5,000 meters under sand, rock and a shifting layer of salt. The primary subsalt region lies in a cluster of blocks in the Santos Basin, off the coasts of Rio de Janeiro and Sao Paulo states.
Thursday's announcement of the Itaipu find represented the second successful discovery Anadarko and Devon have made in the Campos Basin, where more than 85% of Brazil's crude oil is produced.
Itaipu is located in the BM-C-32 block, and the companies found a 240-foot-long column of oil in a reservoir that was 90 feet thick. More important, the reservoir showed similarities to Brazil's first subsalt oil-producing well at the nearby Jubarte field.
Devon operates the block with a 40% share, while Anadarko holds a 33.3% stake. SK Energy holds the remaining 26.7% stake.
The companies plan a sidetrack well and further appraisal drilling at Itaipu in 2010.
Itaipu is about 16 miles north of the Wahoo discovery, which was announced in September 2008. Wahoo is in the Campos Basin's BM-C-30 block. Anadarko is lead operator in the block, with a 30% stake. Devon Energy and EnCana Brasil Petroleo Limitada each hold a 25% share, while SK do Brazil Ltda has a 20% stake.
Anadarko said the consortium was planning a sidetrack at the Wahoo 2 prospect. When the sidetrack is complete, a drillstem test will be conducted at the first Wahoo find. Two additional exploration and appraisal wells are also planned for BM-C-30 in 2010, Anadarko said.
Both the Itaipu and Wahoo discoveries are located near the Jubarte field operated by Brazilian state-run energy giant Petroleo Brasileiro (PBR, PETR4.BR). Jubarte was the site of Brazil's first subsalt oil production in September 2008, when crude was pumped from the 103A well.
While the Campos Basin subsalt prospect don't hold the quantity of oil discovered in the much-ballyhooed Santos Basin, the area does have several advantages. The salt layer is closer to shore and much thinner, and the Campos Basin has a highly developed infrastructure base.
Itaipu prospect well hits pay offshore Brazil
OKLAHOMA CITY -- An exploratory well on the Itaipu prospect in the Campos basin, offshore Brazil, has hit pay, according to operator Devon. The well was drilled to a total depth of 16,240 ft (4,950 m) and encountered a 240-ft (73-m) oil column, at least 90 ft (27 m) of net oil pay, and no oil/water contact, the company says.
The Itaipu discovery is in 4,400 ft (1,341 m) of water, 6 mi (9.6 km) southeast of the Jubarte field and 16 mi (26 km) north of the 2008 Wahoo discovery on block BM-C-30. Devon has a 25% working interest in both the Wahoo discovery well and a successful appraisal well drilled at Wahoo earlier this year.
Block BM-C-32 is one of seven offshore exploratory blocks in Brazil held by Devon, six of which are in the pre-salt trend. Devon has identified 20 prospects (including Wahoo and Itaipu) on its leases with net unrisked resource potential of 2 to 4 Bbbl of oil. The Deepwater Discovery drillship, currently under long-term contract to Devon, will be used for the company’s 2010 exploration program, which includes four planned wells on concession BM-C-34 as well as delineation of the Itaipu discovery.
12/17/2009
The Itaipu discovery is in 4,400 ft (1,341 m) of water, 6 mi (9.6 km) southeast of the Jubarte field and 16 mi (26 km) north of the 2008 Wahoo discovery on block BM-C-30. Devon has a 25% working interest in both the Wahoo discovery well and a successful appraisal well drilled at Wahoo earlier this year.
Block BM-C-32 is one of seven offshore exploratory blocks in Brazil held by Devon, six of which are in the pre-salt trend. Devon has identified 20 prospects (including Wahoo and Itaipu) on its leases with net unrisked resource potential of 2 to 4 Bbbl of oil. The Deepwater Discovery drillship, currently under long-term contract to Devon, will be used for the company’s 2010 exploration program, which includes four planned wells on concession BM-C-34 as well as delineation of the Itaipu discovery.
12/17/2009
Exxon Mobil's buying XTO. Who's next?
When Big Oil plunks down $31 billion to snatch up a natural gas company, talk naturally turns to “who’s next.”
News Monday that Exxon Mobil Corp. had reached an agreement to buy XTO Energy Inc., Colorado’s No. 6 natural gas producer, was still churning through the nation’s oil and gas industry when speculation centered on several other natural gas companies that could topple next.
Exxon said it wanted XTO’s resources and expertise in getting natural gas out of what are called “unconventional” basins because they’re harder to crack than traditional natural gas basins.
Companies being mentioned as possible acquisition targets include Canada’s EnCana Corp. (NYSE: ECA), which has its U.S. headquarters in Denver and ranked No. 3 in the state for 2008 natural gas production. EnCana split itself Nov. 30 into Cenovus Energy Inc., an integrated oil company, and EnCana Corp., a pure-play natural gas company. The company has about 850 employees in Denver and a total of 1,000 across the state.
Also being discussed is Anadarko Petroleum Corp. (NYSE: ACP), based near Houston. Anadarko is one of the largest companies working in the Denver-Julesburg (DJ) basin in Weld County. The company has 700 to 800 employees in its Denver office, plus 200 in the DJ basin.
EnCana’s stock has risen about 10 percent since Dec. 11, the last trading day before the Exxon-XTO news.
Doug Hock, EnCana’s Denver-based spokesman, was unmoved by the “Buy It Now” tag that speculators have attached to the company.
“Given the fact that we’re the largest natural gas company in North America, and that we just split the company so we’re a pure-play natural gas company, yes, we’re on the list,” Hock said. “It’s not surprising.”
Hock was calling from Pennsylvania, where EnCana is introducing itself this week to the citizens of Luzerne County in the Wilkes-Barre area. On Dec. 10, EnCana closed a deal creating a joint venture with private, Denver-based Whitmar Exploration Co. for 25,000 acres of mineral rights in the area, Hock said.
The area is part of the Marcellus Shale basin, one of the hopping new natural gas basins in the East that are drawing lots of interest and investment from the natural gas industry. In April 2009 a U.S. Department of Energy report estimated the Marcellus Shale basin might have 262 trillion cubic feet of “technically recoverable” natural gas — more than 10 times as much gas as was used throughout the entire United States in 2008.
“No one has really drilled in this area,” Hock said. “We’re the first in the county, although there’s a lot of activity going on around them.”
Hock declined to disclose terms of the deal, but said the mineral rights were leased from between 850 and 875 landowners. EnCana is the operating partner and has a 75 percent interest in the joint venture, he said.
The company plans to drill two test wells in 2010 and if things go well, more could follow, Hock said.
“Colorado is important to us, but it’s one part of our portfolio,” he said. “We have a lot of different assets.”
For its part, Anadarko has announced eight resource discoveries this year in some of the hottest plays in the world, including the Gulf of Mexico and West Africa, company spokesman John Christiansen said.
“When people talk about you, then it means that you’re doing something right,” he said.
News Monday that Exxon Mobil Corp. had reached an agreement to buy XTO Energy Inc., Colorado’s No. 6 natural gas producer, was still churning through the nation’s oil and gas industry when speculation centered on several other natural gas companies that could topple next.
Exxon said it wanted XTO’s resources and expertise in getting natural gas out of what are called “unconventional” basins because they’re harder to crack than traditional natural gas basins.
Companies being mentioned as possible acquisition targets include Canada’s EnCana Corp. (NYSE: ECA), which has its U.S. headquarters in Denver and ranked No. 3 in the state for 2008 natural gas production. EnCana split itself Nov. 30 into Cenovus Energy Inc., an integrated oil company, and EnCana Corp., a pure-play natural gas company. The company has about 850 employees in Denver and a total of 1,000 across the state.
Also being discussed is Anadarko Petroleum Corp. (NYSE: ACP), based near Houston. Anadarko is one of the largest companies working in the Denver-Julesburg (DJ) basin in Weld County. The company has 700 to 800 employees in its Denver office, plus 200 in the DJ basin.
EnCana’s stock has risen about 10 percent since Dec. 11, the last trading day before the Exxon-XTO news.
Doug Hock, EnCana’s Denver-based spokesman, was unmoved by the “Buy It Now” tag that speculators have attached to the company.
“Given the fact that we’re the largest natural gas company in North America, and that we just split the company so we’re a pure-play natural gas company, yes, we’re on the list,” Hock said. “It’s not surprising.”
Hock was calling from Pennsylvania, where EnCana is introducing itself this week to the citizens of Luzerne County in the Wilkes-Barre area. On Dec. 10, EnCana closed a deal creating a joint venture with private, Denver-based Whitmar Exploration Co. for 25,000 acres of mineral rights in the area, Hock said.
The area is part of the Marcellus Shale basin, one of the hopping new natural gas basins in the East that are drawing lots of interest and investment from the natural gas industry. In April 2009 a U.S. Department of Energy report estimated the Marcellus Shale basin might have 262 trillion cubic feet of “technically recoverable” natural gas — more than 10 times as much gas as was used throughout the entire United States in 2008.
“No one has really drilled in this area,” Hock said. “We’re the first in the county, although there’s a lot of activity going on around them.”
Hock declined to disclose terms of the deal, but said the mineral rights were leased from between 850 and 875 landowners. EnCana is the operating partner and has a 75 percent interest in the joint venture, he said.
The company plans to drill two test wells in 2010 and if things go well, more could follow, Hock said.
“Colorado is important to us, but it’s one part of our portfolio,” he said. “We have a lot of different assets.”
For its part, Anadarko has announced eight resource discoveries this year in some of the hottest plays in the world, including the Gulf of Mexico and West Africa, company spokesman John Christiansen said.
“When people talk about you, then it means that you’re doing something right,” he said.
Brazil Import Licensing/Customs Valuation
All importers must register with the Secretariat of Foreign Trade (SECEX) to access Brazil's
"SISCOMEX" trade documentation system. SISCOMEX registration requirements are
onerous, including a minimum capital requirement; however, the new updated SISCOMEX system, installed in early 2007, has cut the wait time for import-export license processing almost in half. In addition, fees are assessed for each import statement submitted through SISCOMEX. Most imports into Brazil are covered by an "automatic import license" regime. Brazil's nonautomatic import licensing system covers imports of products that require authorization from specific ministries or agencies, such as beverages (Ministry of Agriculture), pharmaceuticals (Ministry of Health), and arms and munitions
(National Defense Ministry). Although a list of products subject to nonautomatic import licensing
procedures is published on the Brazilian Ministry of Development, Industry and Trade website,
(http://www.desenvolvimento.gov.br/arquivo/secex/conPorImportacao/AnuentesLInaoAuto.pdf), specific information related to nonautomatic import license requirements and explanations for rejections of nonautomatic import license applications are lacking. These measures have made importing into Brazil less transparent and more cumbersome for U.S. exporters.
U.S. companies continue to complain of onerous and burdensome documentation requirements, which are required before certain types of goods can enter Brazil - even on a temporary basis. For example, the Ministry of Health's regulatory agency, ANVISA, must approve product registrations for imported pharmaceuticals, medical devices, health and fitness equipment, cosmetics, and processed food products.
Currently, the registration process at ANVISA takes about 3 months to 6 months for new versions of existing products, but can take over 6 months to register products new to the market. Registration of pharmaceutical products can take over 1 year, since ANVISA requires that a full battery of clinical testing be performed in Brazil, regardless of whether or not the drug already has FDA approval.
ANVISA implemented a regulation late in 2007 (Regulation 185) to comply with federal legislation (Law 10742 of 2003). This regulation requires companies to submit economic information (some of it proprietary) including projected worldwide pricing intentions, in order to register medical devices.
Attempts by industry representatives to challenge this new requirement have been unsuccessful thus far, and no new devices have been registered since it was established. Implementation of such import measures not only delays entry of state-of-the-art U.S. pharmaceutical and medical products into the Brazilian market; it also renders it impossible for U.S. companies to demonstrate new-to-market goods at industry trade shows.
The United States has raised a concern with Brazil that the state of Rio de Janeiro administers the ICMS tax (a value added tax collected by individual states) in a way that provides a preferential tax advantage to a Brazilian soda ash supplier located within the state.
STANDARDS, TESTING, LABELING, AND CERTIFICATION
GOVERNMENT PROCUREMENT
Law 8666 of 1993, which covers most government procurement other than informatics and
telecommunications, requires nondiscriminatory treatment of all bidders regardless of the origin of the product or service. However, the Law’s implementing regulations allow consideration of nonprice factors, giving preferences to certain goods produced in Brazil and stipulating local content requirements for eligibility for fiscal benefits. Decree 1070 of 1994, which regulates the procurement of information technology goods and services, requires federal agencies and parastatal entities to give preferences to locally produced computer products based on a complicated and nontransparent price/technology matrix.
However, Brazil permits foreign companies that have established legal entities in Brazil to compete for procurement-related multilateral development bank loans and opens selected procurements to international tenders.
Brazil is not a signatory to the WTO Agreement on Government Procurement.
INTELLECTUAL PROPERTY RIGHTS (IPR) PROTECTION
Brazil has made important progress in enhancing the effectiveness of intellectual property enforcement, particularly with respect to pirated audio-visual goods. Nonetheless, shortcomings in some areas of IPR protection and enforcement continue to represent barriers to U.S. exports and investment.
Patents and Trademarks
The United States has raised concerns regarding Brazil’s Law 10196 of 2001, which includes a
requirement that National Health Surveillance Agency (ANVISA) approval be obtained prior to the issuance of a pharmaceutical patent. The implementation of this requirement is nontransparent and has contributed to an ongoing backlog in the issuance of patents. The United States is also concerned that this requirement singles out one particular product category for a set of procedural requirements, raising questions in connection with Article 27 of the WTO Agreement on Trade Related Intellectual Property Rights (TRIPS Agreement).
On May 4, 2007 Brazil issued a compulsory license for Merck Sharp & Dohme's anti-retroviral drug efavirenz (brand name: Stocrin) used in treating HIV/AIDS patients. The United States has urged Brazil, in advancing its national public health objectives, to engage in transparent and open discussions with patent holders and other stakeholders, in order to achieve good public health outcomes while preserving the incentive to innovate by protecting intellectual property.
Although Brazil's patent backlog remains high, estimated at between 130,000 and 150,000 applications, the national patent office has taken concrete steps to streamline processing, including an upgrade of its outdated computer system. Over the past 2 years it has increased the number of patent examiners over 200 percent and has plans to further increase the number of examiners from the current level of 255 to 360 full time examiners by the end of 2008, at the same time increasing median salaries 50 percent to retain experienced employees. By the end of 2008, INPI expects to increase its patent processing capacity from the current 20,000 applications per year to 30,000 per year. The government estimates that by the
end of 2009, new patent applications will be adjudicated within 4 years, which would represent the end of the backlog. Brazil has also raised trademark approvals almost six-fold since 2003. In mid-2006, the National Institute of Industrial Property (INPI) instituted a new system of streamlined, paperless processing for trademarks. According to INPI, as a result of the new system, new trademark applications are now being initially processed within a maximum time frame of 12 months. The U.S. Patent and Trademark Office is working with INPI to help that agency in its modernization efforts.
The United States is also concerned about Brazil’s protection against unfair commercial use of data generated in connection with obtaining marketing approval for pharmaceutical products. Law 10603 of 2002 on data confidentiality covers pharmaceuticals for veterinary use, fertilizers, agro-toxins, and their components and related products. The law does not cover pharmaceuticals for human use. If a human use pharmaceutical product is not commercialized within 2 years of the date of sanitary registration, third parties may request use of the data for registration purposes.
Copyrights
Brazil is not a party to the World Intellectual Property Organization Treaties on Copyright, and
Performances and Phonograms.
Despite recent enforcement gains, piracy remains a serious problem. The International Intellectual Property Alliance (IIPA) estimates losses due to piracy of copyrighted materials in Brazil totaled at least $849.6 million in 2007.
Express Delivery Services
Brazil’s customs service is in the process of switching to an automated express delivery clearance system,which will significantly reduce customs clearance times for express packages once it is implemented.
Customs originally expected to complete implementation of the system by the end of 2007; however, a revised schedule now calls for completion in the first quarter of 2008. After implementation of this system is complete, customs has plans to redraft express delivery regulations to remove some of the current restrictions on express delivery.
The U.S. Government is engaging the Brazilian government on use of Admission Temporaire-Temporary Admission (ATA) Carnets. The ATA Carnet, an internationally accepted customs document, would ease the temporary importation of commercial samples, professional equipment, and goods for exhibitions and fairs.
"SISCOMEX" trade documentation system. SISCOMEX registration requirements are
onerous, including a minimum capital requirement; however, the new updated SISCOMEX system, installed in early 2007, has cut the wait time for import-export license processing almost in half. In addition, fees are assessed for each import statement submitted through SISCOMEX. Most imports into Brazil are covered by an "automatic import license" regime. Brazil's nonautomatic import licensing system covers imports of products that require authorization from specific ministries or agencies, such as beverages (Ministry of Agriculture), pharmaceuticals (Ministry of Health), and arms and munitions
(National Defense Ministry). Although a list of products subject to nonautomatic import licensing
procedures is published on the Brazilian Ministry of Development, Industry and Trade website,
(http://www.desenvolvimento.gov.br/arquivo/secex/conPorImportacao/AnuentesLInaoAuto.pdf), specific information related to nonautomatic import license requirements and explanations for rejections of nonautomatic import license applications are lacking. These measures have made importing into Brazil less transparent and more cumbersome for U.S. exporters.
U.S. companies continue to complain of onerous and burdensome documentation requirements, which are required before certain types of goods can enter Brazil - even on a temporary basis. For example, the Ministry of Health's regulatory agency, ANVISA, must approve product registrations for imported pharmaceuticals, medical devices, health and fitness equipment, cosmetics, and processed food products.
Currently, the registration process at ANVISA takes about 3 months to 6 months for new versions of existing products, but can take over 6 months to register products new to the market. Registration of pharmaceutical products can take over 1 year, since ANVISA requires that a full battery of clinical testing be performed in Brazil, regardless of whether or not the drug already has FDA approval.
ANVISA implemented a regulation late in 2007 (Regulation 185) to comply with federal legislation (Law 10742 of 2003). This regulation requires companies to submit economic information (some of it proprietary) including projected worldwide pricing intentions, in order to register medical devices.
Attempts by industry representatives to challenge this new requirement have been unsuccessful thus far, and no new devices have been registered since it was established. Implementation of such import measures not only delays entry of state-of-the-art U.S. pharmaceutical and medical products into the Brazilian market; it also renders it impossible for U.S. companies to demonstrate new-to-market goods at industry trade shows.
The United States has raised a concern with Brazil that the state of Rio de Janeiro administers the ICMS tax (a value added tax collected by individual states) in a way that provides a preferential tax advantage to a Brazilian soda ash supplier located within the state.
STANDARDS, TESTING, LABELING, AND CERTIFICATION
GOVERNMENT PROCUREMENT
Law 8666 of 1993, which covers most government procurement other than informatics and
telecommunications, requires nondiscriminatory treatment of all bidders regardless of the origin of the product or service. However, the Law’s implementing regulations allow consideration of nonprice factors, giving preferences to certain goods produced in Brazil and stipulating local content requirements for eligibility for fiscal benefits. Decree 1070 of 1994, which regulates the procurement of information technology goods and services, requires federal agencies and parastatal entities to give preferences to locally produced computer products based on a complicated and nontransparent price/technology matrix.
However, Brazil permits foreign companies that have established legal entities in Brazil to compete for procurement-related multilateral development bank loans and opens selected procurements to international tenders.
Brazil is not a signatory to the WTO Agreement on Government Procurement.
INTELLECTUAL PROPERTY RIGHTS (IPR) PROTECTION
Brazil has made important progress in enhancing the effectiveness of intellectual property enforcement, particularly with respect to pirated audio-visual goods. Nonetheless, shortcomings in some areas of IPR protection and enforcement continue to represent barriers to U.S. exports and investment.
Patents and Trademarks
The United States has raised concerns regarding Brazil’s Law 10196 of 2001, which includes a
requirement that National Health Surveillance Agency (ANVISA) approval be obtained prior to the issuance of a pharmaceutical patent. The implementation of this requirement is nontransparent and has contributed to an ongoing backlog in the issuance of patents. The United States is also concerned that this requirement singles out one particular product category for a set of procedural requirements, raising questions in connection with Article 27 of the WTO Agreement on Trade Related Intellectual Property Rights (TRIPS Agreement).
On May 4, 2007 Brazil issued a compulsory license for Merck Sharp & Dohme's anti-retroviral drug efavirenz (brand name: Stocrin) used in treating HIV/AIDS patients. The United States has urged Brazil, in advancing its national public health objectives, to engage in transparent and open discussions with patent holders and other stakeholders, in order to achieve good public health outcomes while preserving the incentive to innovate by protecting intellectual property.
Although Brazil's patent backlog remains high, estimated at between 130,000 and 150,000 applications, the national patent office has taken concrete steps to streamline processing, including an upgrade of its outdated computer system. Over the past 2 years it has increased the number of patent examiners over 200 percent and has plans to further increase the number of examiners from the current level of 255 to 360 full time examiners by the end of 2008, at the same time increasing median salaries 50 percent to retain experienced employees. By the end of 2008, INPI expects to increase its patent processing capacity from the current 20,000 applications per year to 30,000 per year. The government estimates that by the
end of 2009, new patent applications will be adjudicated within 4 years, which would represent the end of the backlog. Brazil has also raised trademark approvals almost six-fold since 2003. In mid-2006, the National Institute of Industrial Property (INPI) instituted a new system of streamlined, paperless processing for trademarks. According to INPI, as a result of the new system, new trademark applications are now being initially processed within a maximum time frame of 12 months. The U.S. Patent and Trademark Office is working with INPI to help that agency in its modernization efforts.
The United States is also concerned about Brazil’s protection against unfair commercial use of data generated in connection with obtaining marketing approval for pharmaceutical products. Law 10603 of 2002 on data confidentiality covers pharmaceuticals for veterinary use, fertilizers, agro-toxins, and their components and related products. The law does not cover pharmaceuticals for human use. If a human use pharmaceutical product is not commercialized within 2 years of the date of sanitary registration, third parties may request use of the data for registration purposes.
Copyrights
Brazil is not a party to the World Intellectual Property Organization Treaties on Copyright, and
Performances and Phonograms.
Despite recent enforcement gains, piracy remains a serious problem. The International Intellectual Property Alliance (IIPA) estimates losses due to piracy of copyrighted materials in Brazil totaled at least $849.6 million in 2007.
Express Delivery Services
Brazil’s customs service is in the process of switching to an automated express delivery clearance system,which will significantly reduce customs clearance times for express packages once it is implemented.
Customs originally expected to complete implementation of the system by the end of 2007; however, a revised schedule now calls for completion in the first quarter of 2008. After implementation of this system is complete, customs has plans to redraft express delivery regulations to remove some of the current restrictions on express delivery.
The U.S. Government is engaging the Brazilian government on use of Admission Temporaire-Temporary Admission (ATA) Carnets. The ATA Carnet, an internationally accepted customs document, would ease the temporary importation of commercial samples, professional equipment, and goods for exhibitions and fairs.
2009-12-14
Technip Awarded Contract for the Wheatstone Project Processing Platform in Australia
Technip (Paris:TEC) has been awarded, by Chevron Australia Pty Ltd, a front end engineering design (FEED)(FREE stock trend analysis) contract for the offshore processing platform associated with the Wheatstone Project in Australia.
The upstream (offshore) portion of the project comprises development of gas fields in the WA-17-R and WA-253-P petroleum titles located on the Northwest Shelf offshore Western Australia at water depths of 70 to 200 meters. Subsea gas gathering systems will transport production to the processing platform where the gas and condensate will be respectively dehydrated, dewatered, compressed and exported through a 200 kilometers export pipeline to the onshore gas plant located at Ashburton North, 12 kilometers west of Onslow, on the Pilbara coast of mainland Western Australia.
Technip’s operating centers in Perth, Kuala Lumpur, Houston and Paris will participate in the execution of the contract, which is scheduled to be completed by the end of 2010. The work involves selection of the optimum offshore configuration and development of the full FEED for the selected concept, including flow assurance of the associated flowlines (1) and pipelines. The platform topsides is anticipated to be one of the world’s largest single integrated floatover installations.
Technip's expertise in the construction and installation of heavy topsides in offshore environments is especially suited to the Wheatstone project, given the size and weight of the platform topsides and the seasonal weather constraints in the region.
Technip is a world leader in the fields of project management, engineering and construction for the oil & gas industry, offering a comprehensive portfolio of innovative solutions and technologies.
With 23,000 employees around the world, integrated capabilities and proven expertise in underwater infrastructures (Subsea), offshore facilities (Offshore) and large processing units and plants on land (Onshore), Technip is a key contributor to the development of sustainable solutions for the energy challenges of the 21st century.
Present in 46 countries, Technip has operating centers and industrial assets (manufacturing plants, spoolbases, construction yard) on five continents, and operates its own fleet of specialized vessels for pipeline installation and subsea construction.
The Technip share is listed on Euronext Paris exchange and over the counter (OTC) in the USA.
The upstream (offshore) portion of the project comprises development of gas fields in the WA-17-R and WA-253-P petroleum titles located on the Northwest Shelf offshore Western Australia at water depths of 70 to 200 meters. Subsea gas gathering systems will transport production to the processing platform where the gas and condensate will be respectively dehydrated, dewatered, compressed and exported through a 200 kilometers export pipeline to the onshore gas plant located at Ashburton North, 12 kilometers west of Onslow, on the Pilbara coast of mainland Western Australia.
Technip’s operating centers in Perth, Kuala Lumpur, Houston and Paris will participate in the execution of the contract, which is scheduled to be completed by the end of 2010. The work involves selection of the optimum offshore configuration and development of the full FEED for the selected concept, including flow assurance of the associated flowlines (1) and pipelines. The platform topsides is anticipated to be one of the world’s largest single integrated floatover installations.
Technip's expertise in the construction and installation of heavy topsides in offshore environments is especially suited to the Wheatstone project, given the size and weight of the platform topsides and the seasonal weather constraints in the region.
Technip is a world leader in the fields of project management, engineering and construction for the oil & gas industry, offering a comprehensive portfolio of innovative solutions and technologies.
With 23,000 employees around the world, integrated capabilities and proven expertise in underwater infrastructures (Subsea), offshore facilities (Offshore) and large processing units and plants on land (Onshore), Technip is a key contributor to the development of sustainable solutions for the energy challenges of the 21st century.
Present in 46 countries, Technip has operating centers and industrial assets (manufacturing plants, spoolbases, construction yard) on five continents, and operates its own fleet of specialized vessels for pipeline installation and subsea construction.
The Technip share is listed on Euronext Paris exchange and over the counter (OTC) in the USA.
Braskem and Novozymes to Make Green Plastic
COPENHAGEN, Denmark - (Business Wire) Braskem, the largest petrochemical company in Latin America, and Novozymes, the world’s leading producer of industrial enzymes, today announced a research partnership to develop large-scale production of polypropylene from sugarcane.
“Braskem was the first company in the world to produce a 100% certified green polypropylene on an experimental basis. The partnership with Novozymes will further boost Braskem’s technology development and be a key step in the company's path to consolidate its worldwide leadership in green polymers, all leveraged by Brazil’s competitive advantages within renewable resources,” says Bernardo Gradin, CEO of Braskem.
Sugar is the new oil
Polypropylene is a plastic used in a wide range of everyday products, from food containers, drinking straws, and water bottles to washing machines, furniture, and car bumpers. It is the second most widely used thermoplastic with a global consumption in 2008 of 44 million metric tons. The market is estimated to be USD 66 billion, with an annual growth rate of 4%.
Today, polypropylene is primarily derived from oil, but Braskem and Novozymes will develop a green alternative based on Novozymes’ core fermentation technology and Braskem’s expertise in chemical technology and thermoplastics. Initial development will run for at least five years.
“We live in a world where oil is limited and expensive, and the chemical industry is looking for alternatives to its petroleum-based products. Novozymes’ partnership with Braskem is a move toward a green, bio-based economy, in which sugar will be the new oil,” says Steen Riisgaard, CEO of Novozymes.
Both companies have ongoing interests in a bio-based economy: Braskem is currently building a 200,000-tons-per-year green polyethylene plant in Brazil with ethanol from sugarcane as the raw material. Novozymes is producing enzymes to turn agricultural waste into advanced biofuels and has partnered to convert renewable raw materials into acrylic acid.
Braskem is the leader in the thermoplastics segment in Latin America and the third largest resins producer in the Americas. With 18 industrial plants located throughout Brazil, the company produces over 11 million tons of thermoplastic resins and other chemical and petrochemical products a year. Read more at www.braskem.com.
Novozymes is the world leader in bioinnovation. Together with customers across a broad array of industries Novozymes creates tomorrow's industrial biosolutions, improving its customers' business and the use of the planet's resources. Read more at www.novozymes.com.
“Braskem was the first company in the world to produce a 100% certified green polypropylene on an experimental basis. The partnership with Novozymes will further boost Braskem’s technology development and be a key step in the company's path to consolidate its worldwide leadership in green polymers, all leveraged by Brazil’s competitive advantages within renewable resources,” says Bernardo Gradin, CEO of Braskem.
Sugar is the new oil
Polypropylene is a plastic used in a wide range of everyday products, from food containers, drinking straws, and water bottles to washing machines, furniture, and car bumpers. It is the second most widely used thermoplastic with a global consumption in 2008 of 44 million metric tons. The market is estimated to be USD 66 billion, with an annual growth rate of 4%.
Today, polypropylene is primarily derived from oil, but Braskem and Novozymes will develop a green alternative based on Novozymes’ core fermentation technology and Braskem’s expertise in chemical technology and thermoplastics. Initial development will run for at least five years.
“We live in a world where oil is limited and expensive, and the chemical industry is looking for alternatives to its petroleum-based products. Novozymes’ partnership with Braskem is a move toward a green, bio-based economy, in which sugar will be the new oil,” says Steen Riisgaard, CEO of Novozymes.
Both companies have ongoing interests in a bio-based economy: Braskem is currently building a 200,000-tons-per-year green polyethylene plant in Brazil with ethanol from sugarcane as the raw material. Novozymes is producing enzymes to turn agricultural waste into advanced biofuels and has partnered to convert renewable raw materials into acrylic acid.
Braskem is the leader in the thermoplastics segment in Latin America and the third largest resins producer in the Americas. With 18 industrial plants located throughout Brazil, the company produces over 11 million tons of thermoplastic resins and other chemical and petrochemical products a year. Read more at www.braskem.com.
Novozymes is the world leader in bioinnovation. Together with customers across a broad array of industries Novozymes creates tomorrow's industrial biosolutions, improving its customers' business and the use of the planet's resources. Read more at www.novozymes.com.
Brazil Current Account Gap Threatens Reserve Policy
Dec. 14 (Bloomberg) -- Brazil’s current account gap, which may more than double to a record next year, threatens the country’s policy of accumulating international currency reserves, said Luciano Coutinho, president of the National Development Bank.
“It’s worrisome,” Coutinho said in an event in Sao Paulo. “A deficit too far above 1.5 percent of gross domestic product is not very healthy.”
The deficit in the country’s current account, the broadest measure for goods and services trade, may reach a record $40 billion next year, according to the median forecast in a central bank survey of about 100 economists published today.
Brazil’s consumer-led recovery is boosting imports and fueling a wider current account deficit that may lead to a weakening of the real. The currency has rallied 32 percent this year, more than all 16 major currencies tracked by Bloomberg.
The currency rose 0.4 percent to 1.7520 per dollar at 10:37 a.m. New York time from 1.7585 on Dec. 11. Yields on interest rate future contracts were little changed.
The current account gap widened to $18.9 billion in the 12 months through October, or 1.32 percent of GDP, according to central bank figures.
Exchange Rate
The growing current account deficit will prevent the real from strengthening next year, according to the chief economist of Itau Unibanco Holding SA, Brazil’s largest bank by market value.
Ilan Goldfajn, a former central banker, expects the exchange rate to rise to 1.72 per dollar by year-end 2010 and reach 1.75 by the end of 2011 as the current account deficit rises to 3.3 percent in 2010 and 3.9 percent in 2011.
“In terms of equilibrium, this exchange rate doesn’t need to rise further,” he told reporters in Sao Paulo on Dec. 9.
The central bank has increased international reserves to a near record of $238 billion, up from $206 billion a year ago.
Brazil also needs to increase investment to between 23 percent and 24 percent of GDP in the next two to four years to sustain economic growth of 5 percent, Coutinho said.
“As the crisis ends, we need to look at long-term” financing needs, he said during a speech in Sao Paulo. “This is the only way of reconciling growth with sustainability.”
Funding priorities next year for the bank known as BNDES include investments in infrastructure, logistics and technological innovation, he said.
The rate of investment in the third quarter fell to 17.7 percent of GDP, down from 20.1 percent in the same three-month period in 2008, the national statistic agency said Dec. 10.
Investment jumped 6.5 percent in third quarter of 2009 from the previous three-month period.
Andre Soliani
“It’s worrisome,” Coutinho said in an event in Sao Paulo. “A deficit too far above 1.5 percent of gross domestic product is not very healthy.”
The deficit in the country’s current account, the broadest measure for goods and services trade, may reach a record $40 billion next year, according to the median forecast in a central bank survey of about 100 economists published today.
Brazil’s consumer-led recovery is boosting imports and fueling a wider current account deficit that may lead to a weakening of the real. The currency has rallied 32 percent this year, more than all 16 major currencies tracked by Bloomberg.
The currency rose 0.4 percent to 1.7520 per dollar at 10:37 a.m. New York time from 1.7585 on Dec. 11. Yields on interest rate future contracts were little changed.
The current account gap widened to $18.9 billion in the 12 months through October, or 1.32 percent of GDP, according to central bank figures.
Exchange Rate
The growing current account deficit will prevent the real from strengthening next year, according to the chief economist of Itau Unibanco Holding SA, Brazil’s largest bank by market value.
Ilan Goldfajn, a former central banker, expects the exchange rate to rise to 1.72 per dollar by year-end 2010 and reach 1.75 by the end of 2011 as the current account deficit rises to 3.3 percent in 2010 and 3.9 percent in 2011.
“In terms of equilibrium, this exchange rate doesn’t need to rise further,” he told reporters in Sao Paulo on Dec. 9.
The central bank has increased international reserves to a near record of $238 billion, up from $206 billion a year ago.
Brazil also needs to increase investment to between 23 percent and 24 percent of GDP in the next two to four years to sustain economic growth of 5 percent, Coutinho said.
“As the crisis ends, we need to look at long-term” financing needs, he said during a speech in Sao Paulo. “This is the only way of reconciling growth with sustainability.”
Funding priorities next year for the bank known as BNDES include investments in infrastructure, logistics and technological innovation, he said.
The rate of investment in the third quarter fell to 17.7 percent of GDP, down from 20.1 percent in the same three-month period in 2008, the national statistic agency said Dec. 10.
Investment jumped 6.5 percent in third quarter of 2009 from the previous three-month period.
Andre Soliani
Siemens VAI starts up continuous slab caster at Brazil's Gerdau Acominas
Published: 13 Dec 2009 21:12:54 PST
SteelOrbis - On December 10, Austria-based giant engineering and plantmaking company Siemens VAI Metals Technologies (Siemens VAI) announced that it has successfully brought into operation a new continuous slab caster at Gerdau Açominas, a Brazilian steelmaking company which is a member of the Gerdau Group.
The new slab caster was constructed by Siemens VAI at Gerdau Açominas' Ouro Branco Works, located in the state of Minas Gerais, and allows it to produce 1.5 million mt of high-quality steels for the flat steel market. The caster is equipped with technological packages to ensure product quality and reliable production operations. The acceptance certificate was issued in the middle of October 2009.
While the continuous slab caster for Gerdau Açominas was being constructed, Siemens also supplied an RH (Ruhrstahl-Heraeus) vacuum degassing plant together with the associated electrical and automation equipment. Both plants have been designed so that another degassing vessel and a second casting line can be installed in a later expansion stage. These two projects, which have now been completed, amounted to a cost of US$100 million, and are part of an expansion program for the Ouro Branco Steel Works. The project's objectives were to increase steel production in the works by 50 percent from 3.0 to 4.5 million mt per year.
Gerdau is the leading company in the production of long steels in the Americas and one of the major suppliers of specialty long steel in the world. It has industrial plants in 14 countries, with operations in the Americas, Europe and Asia, which, in total, have an installed capacity of more than 20 million mt of steel. It is the largest recycler in Latin America, and reclaims over 16 million mt of scrap worldwide every year.
SteelOrbis - On December 10, Austria-based giant engineering and plantmaking company Siemens VAI Metals Technologies (Siemens VAI) announced that it has successfully brought into operation a new continuous slab caster at Gerdau Açominas, a Brazilian steelmaking company which is a member of the Gerdau Group.
The new slab caster was constructed by Siemens VAI at Gerdau Açominas' Ouro Branco Works, located in the state of Minas Gerais, and allows it to produce 1.5 million mt of high-quality steels for the flat steel market. The caster is equipped with technological packages to ensure product quality and reliable production operations. The acceptance certificate was issued in the middle of October 2009.
While the continuous slab caster for Gerdau Açominas was being constructed, Siemens also supplied an RH (Ruhrstahl-Heraeus) vacuum degassing plant together with the associated electrical and automation equipment. Both plants have been designed so that another degassing vessel and a second casting line can be installed in a later expansion stage. These two projects, which have now been completed, amounted to a cost of US$100 million, and are part of an expansion program for the Ouro Branco Steel Works. The project's objectives were to increase steel production in the works by 50 percent from 3.0 to 4.5 million mt per year.
Gerdau is the leading company in the production of long steels in the Americas and one of the major suppliers of specialty long steel in the world. It has industrial plants in 14 countries, with operations in the Americas, Europe and Asia, which, in total, have an installed capacity of more than 20 million mt of steel. It is the largest recycler in Latin America, and reclaims over 16 million mt of scrap worldwide every year.
2009-12-11
Technip: $95.8 mln pact for work offshore Egypt
TEL AVIV (MarketWatch) -- Technip, the Paris construction firm, said Thursday it received a contract valued at 65 million euros ($95.8 million) from Burullus Gas Co. for subsea engineering, construction and installation work. The work is set for the West Delta Deep Marine Phase VII development project's WDDM Concession located 95 kilometers (53 miles) offshore Egypt in the Mediterranean Sea. Burullus is held 50% by Egyptian General Petroleum Corp. and 25% by each of BG Group.
Brazil Petrobras Reports Sergipe Basin Oil Find To ANP
RIO DE JANEIRO (Dow Jones)--Brazilian state-run energy giant Petroleo Brasileiro SA (PBR) reported an oil discovery at an onshore block in the Sergipe Basin late Wednesday.
The discovery was made at the inland SEAL-T-391 block in the Sergipe Basin, according to data on National Petroleum Agency, or ANP, Web site.
Petrobras reported that the 3BRSA786SE wildcat well tested positive for traces of oil. The Sonda Convencional 91 rig spudded the well, targeting a total depth of 780 meters.
Oil companies operating in Brazil must inform the ANP of indications of oil, gas or hydrocarbons in any exploratory well within 48 hours. The disclosures are routine, and do not indicate commercial viability
The discovery was made at the inland SEAL-T-391 block in the Sergipe Basin, according to data on National Petroleum Agency, or ANP, Web site.
Petrobras reported that the 3BRSA786SE wildcat well tested positive for traces of oil. The Sonda Convencional 91 rig spudded the well, targeting a total depth of 780 meters.
Oil companies operating in Brazil must inform the ANP of indications of oil, gas or hydrocarbons in any exploratory well within 48 hours. The disclosures are routine, and do not indicate commercial viability
Brazil's Growth Short of Estimate
RIO DE JANEIRO -- Brazil's economic recovery continued at a slower-than-expected pace in the third quarter, likely opening the door for the central bank to maintain interest rates at historic lows well into next year.
Brazil's third-quarter gross domestic product expanded 1.3% quarter-on-quarter, while second-quarter GDP was revised downward to growth of 1.1%. The July-through-September figure was well below market expectations for growth of 1.9%.
The data contrasted with comments late Wednesday by Finance Minister Guido Mantega, who said Brazil's economy would grow at an annualized rate of 8% in the third and fourth quarters. While some wondered what happened to the robust recovery, there is a silver lining, economists said.
"The economy is growing at a much more moderate trend than the projections pointed to," said Newton Rosa, an economist at the São Paulo-based Sulamerica Investimento fund. "But this has a positive side in that it shouldn't put pressure on the central bank to raise interest rates in the short term."
Expectations that the Brazilian Central Bank would start to raise rates increased after Wednesday night's meeting of the rate-setting panel. While the panel left the benchmark Selic base interest rate unchanged at 8.75%, it altered its statement that hinted at sooner-than-expected rate increases.
The third-quarter figures abruptly doused those expectations, economists said.
"The numbers throw a bucket of cold water on expectations for a quick increase to interest rates," said Juan Jensen, an economist at the Tendencias consultants group in São Paulo. "The numbers corroborate the central bank's message that the economy is developing without generating any pressures."
Mr. Jensen expects the central bank to embark on a tightening cycle in the second half of 2010, with the Selic ending the year at 10%.
The market consensus is that once the bank starts to boost rates, the increases will come fast and furious. The central bank's weekly survey of the market, released Monday, forecast a Selic of 10.63% by end-2010.
Thursday's GDP data also held some surprises that dimmed the outlook for a stronger rebound from a recession that took hold at this time last year and didn't ease until the second quarter of 2009.
Brazil's industrial sector led the expansion, advancing 2.9% in the third quarter from the second quarter. The service sector also climbed 1.6% quarter-on-quarter. The country's powerhouse agricultural sector slipped dramatically, tumbling 2.5% in the third quarter.
—Rogerio Jelmayer in São Paulo and Gerald Jeffris in Brasilia contributed to this article.
Brazil's third-quarter gross domestic product expanded 1.3% quarter-on-quarter, while second-quarter GDP was revised downward to growth of 1.1%. The July-through-September figure was well below market expectations for growth of 1.9%.
The data contrasted with comments late Wednesday by Finance Minister Guido Mantega, who said Brazil's economy would grow at an annualized rate of 8% in the third and fourth quarters. While some wondered what happened to the robust recovery, there is a silver lining, economists said.
"The economy is growing at a much more moderate trend than the projections pointed to," said Newton Rosa, an economist at the São Paulo-based Sulamerica Investimento fund. "But this has a positive side in that it shouldn't put pressure on the central bank to raise interest rates in the short term."
Expectations that the Brazilian Central Bank would start to raise rates increased after Wednesday night's meeting of the rate-setting panel. While the panel left the benchmark Selic base interest rate unchanged at 8.75%, it altered its statement that hinted at sooner-than-expected rate increases.
The third-quarter figures abruptly doused those expectations, economists said.
"The numbers throw a bucket of cold water on expectations for a quick increase to interest rates," said Juan Jensen, an economist at the Tendencias consultants group in São Paulo. "The numbers corroborate the central bank's message that the economy is developing without generating any pressures."
Mr. Jensen expects the central bank to embark on a tightening cycle in the second half of 2010, with the Selic ending the year at 10%.
The market consensus is that once the bank starts to boost rates, the increases will come fast and furious. The central bank's weekly survey of the market, released Monday, forecast a Selic of 10.63% by end-2010.
Thursday's GDP data also held some surprises that dimmed the outlook for a stronger rebound from a recession that took hold at this time last year and didn't ease until the second quarter of 2009.
Brazil's industrial sector led the expansion, advancing 2.9% in the third quarter from the second quarter. The service sector also climbed 1.6% quarter-on-quarter. The country's powerhouse agricultural sector slipped dramatically, tumbling 2.5% in the third quarter.
—Rogerio Jelmayer in São Paulo and Gerald Jeffris in Brasilia contributed to this article.
Chevron cuts downstream budget
SAN RAMON, Calif., Dec. 11 (UPI) -- Despite describing its financial position as strong, American supermajor Chevron announced plans to cut its overall budget and downstream spending for 2010.
Dave O'Reilly, chief executive officer and chairman at Chevron, said 80 percent of the budget for 2010 was set aside for upstream oil and gas projects.
"Much of our 2010 spending continues to be on large, multiyear projects consistent with our upstream growth strategies and on improving operating efficiency and reliability," he said.
Chevron said for 2010 it is targeting opportunities in the U.S. Gulf of Mexico and Latin America. Work in liquefied natural gas is slated for the Gorgon and Wheatstone projects in Australia and additional facilities in Angola.
Energy analysts said slumping demand, due in part to the global economic recession, contributed to the decision to cut downstream activity. O'Reilly said despite the strains, his company is on solid economic ground.
"Our company is in a strong financial position," he said.
Dave O'Reilly, chief executive officer and chairman at Chevron, said 80 percent of the budget for 2010 was set aside for upstream oil and gas projects.
"Much of our 2010 spending continues to be on large, multiyear projects consistent with our upstream growth strategies and on improving operating efficiency and reliability," he said.
Chevron said for 2010 it is targeting opportunities in the U.S. Gulf of Mexico and Latin America. Work in liquefied natural gas is slated for the Gorgon and Wheatstone projects in Australia and additional facilities in Angola.
Energy analysts said slumping demand, due in part to the global economic recession, contributed to the decision to cut downstream activity. O'Reilly said despite the strains, his company is on solid economic ground.
"Our company is in a strong financial position," he said.
Chevron cuts downstream budget
SAN RAMON, Calif., Dec. 11 (UPI) -- Despite describing its financial position as strong, American supermajor Chevron announced plans to cut its overall budget and downstream spending for 2010.
Dave O'Reilly, chief executive officer and chairman at Chevron, said 80 percent of the budget for 2010 was set aside for upstream oil and gas projects.
"Much of our 2010 spending continues to be on large, multiyear projects consistent with our upstream growth strategies and on improving operating efficiency and reliability," he said.
Chevron said for 2010 it is targeting opportunities in the U.S. Gulf of Mexico and Latin America. Work in liquefied natural gas is slated for the Gorgon and Wheatstone projects in Australia and additional facilities in Angola.
Energy analysts said slumping demand, due in part to the global economic recession, contributed to the decision to cut downstream activity. O'Reilly said despite the strains, his company is on solid economic ground.
"Our company is in a strong financial position," he said.
Dave O'Reilly, chief executive officer and chairman at Chevron, said 80 percent of the budget for 2010 was set aside for upstream oil and gas projects.
"Much of our 2010 spending continues to be on large, multiyear projects consistent with our upstream growth strategies and on improving operating efficiency and reliability," he said.
Chevron said for 2010 it is targeting opportunities in the U.S. Gulf of Mexico and Latin America. Work in liquefied natural gas is slated for the Gorgon and Wheatstone projects in Australia and additional facilities in Angola.
Energy analysts said slumping demand, due in part to the global economic recession, contributed to the decision to cut downstream activity. O'Reilly said despite the strains, his company is on solid economic ground.
"Our company is in a strong financial position," he said.
Top gas producers tackle global glut
DOHA, Qatar, Dec. 11 (UPI) -- The world's top natural gas
producers meeting in the Gulf state of Qatar have agreed to strengthen their emergent organization and work together to push up tumbling prices caused by an unprecedented global gas glut.
But there's still no sign that they will coalesce into a price-manipulating cartel with the market muscle of the 13-member Organization of Petroleum Exporting Countries that the three nations with the world's three biggest reserves of gas -- Russia, Iran and Qatar -- are pushing for.
Talk of a possible major gas monopoly, dubbed a "gas OPEC," has unnerved Europe, which gets much of its gas from Russia. The 27-member European Union imports 61 percent of its gas needs, 42 percent from Russia.
There are concerns too that a resurgent Russia, now vying with Saudi Arabia as the world's leading oil producer, is using its oil and gas exports as leverage to reassert its dominance over the states that comprised the former Soviet bloc.
The 15-member Gas Exporting Countries Forum agreed at its Dec. 9-10 ministerial meeting in Doha, the ninth since the organization was formed in 2001, that it needs to expand strategic cooperation.
The group also elected its first secretary-general, energy executive Leonid Bokhanovsky, vice president of Russian pipeline builder OAO Stroytansgaz, further cementing its organizational structure from its informal beginnings and adding more cohesion to its decision-making process.
According to Forbes, the group of gas producers "is in many ways similar to OPEC in its early days. … OPEC members cooperated to use their market power and as a result extracted hundreds of thousands of billions of dollars of 'cartel profits' from consuming countries."
"The Gas Exporting Countries Forum should function like OPEC to defend the interests of its members," declared Algerian Energy Minister Chakib Khelil.
He urged forum members to "reach agreement on a strategy for obtaining a fair price for gas."
Forbes observed that "such words cause alarm, especially in European and Asian countries, many of which are highly dependent on gas imports from GECF member states."
The Paris-based International Energy Agency warned in November of an "acute glut" of natural gas across the world in the coming years because of rising production in the United States and Canada.
Much of this is due to new technologies that allow the large-scale production of "shale gas," an unconventional natural gas, particularly in the United States, which had been expected to become a major gas importer.
This, Forbes noted, would "turn the United States into a net exporter and thus offset a GECF-led natural gas cartel."
Still, opinion remains divided over the likelihood that a Gas OPEC will emerge.
U.S.-based global security consultancy Stratfor said in an analysis that the prospect of a cartel being able to affect gas prices is remote because natural gas is a very different energy commodity than oil.
"Gas is not transported -- or priced -- like oil" and "cannot simply be poured into a container and sent to market," it said. "It has to be shipped and distributed via multibillion-dollar dedicated pipeline infrastructures that require years to build.
"Because the infrastructure is so tightly linked to the market, natural gas prices almost exclusively are priced only within that network, not via the global market as oil is."
Most GECF members "are wholly dependent upon foreign investment for their natural gas industries … and are very unlikely to actually take steps to hurt their customers," Stratfor added.
"Keeping those investments flowing and those facilities operational requires partnering with customers, not plotting against them."
Forbes sees it differently. "Despite potentially mitigating factors, the economic risk of an emerging natural gas cartel remains since market structures change rapidly and gas exporters are determined to cooperate," it noted.
"In the early 1960s, OPEC was dismissed as an ineffective forum. But it managed to harm the world economy and extracted enormous 'cartel profits' at the expense of consumers only a decade later.
"Today, policymakers need to take the scenario of a natural gas cartel seriously. It could cost consumers dearly and hurt the world economy if we were unprepared."
producers meeting in the Gulf state of Qatar have agreed to strengthen their emergent organization and work together to push up tumbling prices caused by an unprecedented global gas glut.
But there's still no sign that they will coalesce into a price-manipulating cartel with the market muscle of the 13-member Organization of Petroleum Exporting Countries that the three nations with the world's three biggest reserves of gas -- Russia, Iran and Qatar -- are pushing for.
Talk of a possible major gas monopoly, dubbed a "gas OPEC," has unnerved Europe, which gets much of its gas from Russia. The 27-member European Union imports 61 percent of its gas needs, 42 percent from Russia.
There are concerns too that a resurgent Russia, now vying with Saudi Arabia as the world's leading oil producer, is using its oil and gas exports as leverage to reassert its dominance over the states that comprised the former Soviet bloc.
The 15-member Gas Exporting Countries Forum agreed at its Dec. 9-10 ministerial meeting in Doha, the ninth since the organization was formed in 2001, that it needs to expand strategic cooperation.
The group also elected its first secretary-general, energy executive Leonid Bokhanovsky, vice president of Russian pipeline builder OAO Stroytansgaz, further cementing its organizational structure from its informal beginnings and adding more cohesion to its decision-making process.
According to Forbes, the group of gas producers "is in many ways similar to OPEC in its early days. … OPEC members cooperated to use their market power and as a result extracted hundreds of thousands of billions of dollars of 'cartel profits' from consuming countries."
"The Gas Exporting Countries Forum should function like OPEC to defend the interests of its members," declared Algerian Energy Minister Chakib Khelil.
He urged forum members to "reach agreement on a strategy for obtaining a fair price for gas."
Forbes observed that "such words cause alarm, especially in European and Asian countries, many of which are highly dependent on gas imports from GECF member states."
The Paris-based International Energy Agency warned in November of an "acute glut" of natural gas across the world in the coming years because of rising production in the United States and Canada.
Much of this is due to new technologies that allow the large-scale production of "shale gas," an unconventional natural gas, particularly in the United States, which had been expected to become a major gas importer.
This, Forbes noted, would "turn the United States into a net exporter and thus offset a GECF-led natural gas cartel."
Still, opinion remains divided over the likelihood that a Gas OPEC will emerge.
U.S.-based global security consultancy Stratfor said in an analysis that the prospect of a cartel being able to affect gas prices is remote because natural gas is a very different energy commodity than oil.
"Gas is not transported -- or priced -- like oil" and "cannot simply be poured into a container and sent to market," it said. "It has to be shipped and distributed via multibillion-dollar dedicated pipeline infrastructures that require years to build.
"Because the infrastructure is so tightly linked to the market, natural gas prices almost exclusively are priced only within that network, not via the global market as oil is."
Most GECF members "are wholly dependent upon foreign investment for their natural gas industries … and are very unlikely to actually take steps to hurt their customers," Stratfor added.
"Keeping those investments flowing and those facilities operational requires partnering with customers, not plotting against them."
Forbes sees it differently. "Despite potentially mitigating factors, the economic risk of an emerging natural gas cartel remains since market structures change rapidly and gas exporters are determined to cooperate," it noted.
"In the early 1960s, OPEC was dismissed as an ineffective forum. But it managed to harm the world economy and extracted enormous 'cartel profits' at the expense of consumers only a decade later.
"Today, policymakers need to take the scenario of a natural gas cartel seriously. It could cost consumers dearly and hurt the world economy if we were unprepared."
Braskem Tetra Pak deal
Moscow. Dec 09, 2009.
Tetra Pak company reached an agreement with Brazilian Braskem SA, manufacturer of oil and gas products, to buy limited quantities of high density polyethylene produced from 100% renewable raw materials. Tetra Pak will use this product for cardboard packaging, as the company’s press service informed Lesprom Network.
Braskem hopes the first mill producing ‘green’ polyethylene on industrial scale to start production in late 2010. The mill is located in South Brazil. First deliveries of ‘green’ polyethylene to Tetra Pak are scheduled for early 2011. Later on, as agreed in the contract, Braskem is to deliver 5,000 tons of ‘green’ high-density polyethylene annually which will be used in manufacturing of plastic covers and other opening devices for food cans. This volume makes up slightly over 5% of total Tetra Pak’s consumption of high-density polyethylene and less than 1% of the total polymer volume procured by the company.
As a member of the World Wildlife Fund’s Climate Savers program, Tetra Pak contributes to fighting climate change and its current goal – increasing carbon dioxide emissions by 10% in 2005-2010, as said in the release.
Tetra Pak company reached an agreement with Brazilian Braskem SA, manufacturer of oil and gas products, to buy limited quantities of high density polyethylene produced from 100% renewable raw materials. Tetra Pak will use this product for cardboard packaging, as the company’s press service informed Lesprom Network.
Braskem hopes the first mill producing ‘green’ polyethylene on industrial scale to start production in late 2010. The mill is located in South Brazil. First deliveries of ‘green’ polyethylene to Tetra Pak are scheduled for early 2011. Later on, as agreed in the contract, Braskem is to deliver 5,000 tons of ‘green’ high-density polyethylene annually which will be used in manufacturing of plastic covers and other opening devices for food cans. This volume makes up slightly over 5% of total Tetra Pak’s consumption of high-density polyethylene and less than 1% of the total polymer volume procured by the company.
As a member of the World Wildlife Fund’s Climate Savers program, Tetra Pak contributes to fighting climate change and its current goal – increasing carbon dioxide emissions by 10% in 2005-2010, as said in the release.
Petrobras Finds Oil for First Time in BM-S-17 Block
Dec. 9 (Bloomberg) -- Petroleo Brasileiro SA, Brazil’s state-controlled oil producer, found evidence of oil in an offshore block in the country’s southeastern Santos Basin for the first time.
Petrobras, as the Rio de Janeiro-based company is known, notified the find in its BM-S-17 block to the National Petroleum Agency on Nov. 30, according to the regulator’s Web site. The block is in the so-called pre-salt area.
Latin America’s biggest company is investing billions of dollars to boost production by more than half and develop the Tupi field, the Americas’ largest oil discovery in more than three decades. The importance of BM-S-17 will hinge on whether its commercially viable, SLW Corretora analyst Erick Scott Hood said.
“Now the market will wait for information on whether the well is commercially viable,” Hood said in a telephone interview today from Sao Paulo.
Petrobras rose 18 centavos, or 0.5 percent, to 37.77 reais at 2:40 p.m. in Sao Paulo. The stock has gained 65 percent this year.
This was the first well to be drilled in the BM-S-17 block, ANP, as the regulator is known, said.
A Rio de Janeiro-based Petrobras spokeswoman, who can’t be named under company policy, couldn’t immediately confirm how much the block holds. An ANP spokeswoman, who also can’t be named, said there’s no deadline for the company to announce the commercial viability of the block.
Yesterday, the Brazilian oil company said tests confirmed the existence of light oil in the Iara field in the Santos Basin. Petrobras kept its estimate of as much as 4 billion barrels of recoverable light oil and natural gas in the area.
Petrobras aims to increase total output to 3.7 million barrels a day by 2013, from 2.4 million in 2008.
Lucia Kassai
Petrobras, as the Rio de Janeiro-based company is known, notified the find in its BM-S-17 block to the National Petroleum Agency on Nov. 30, according to the regulator’s Web site. The block is in the so-called pre-salt area.
Latin America’s biggest company is investing billions of dollars to boost production by more than half and develop the Tupi field, the Americas’ largest oil discovery in more than three decades. The importance of BM-S-17 will hinge on whether its commercially viable, SLW Corretora analyst Erick Scott Hood said.
“Now the market will wait for information on whether the well is commercially viable,” Hood said in a telephone interview today from Sao Paulo.
Petrobras rose 18 centavos, or 0.5 percent, to 37.77 reais at 2:40 p.m. in Sao Paulo. The stock has gained 65 percent this year.
This was the first well to be drilled in the BM-S-17 block, ANP, as the regulator is known, said.
A Rio de Janeiro-based Petrobras spokeswoman, who can’t be named under company policy, couldn’t immediately confirm how much the block holds. An ANP spokeswoman, who also can’t be named, said there’s no deadline for the company to announce the commercial viability of the block.
Yesterday, the Brazilian oil company said tests confirmed the existence of light oil in the Iara field in the Santos Basin. Petrobras kept its estimate of as much as 4 billion barrels of recoverable light oil and natural gas in the area.
Petrobras aims to increase total output to 3.7 million barrels a day by 2013, from 2.4 million in 2008.
Lucia Kassai
2009-12-10
Votorantim joins Trinidad aluminum smelter project
Thursday, 10 Dec 2009
Reuters reported that Brazil's Votorantim Group has signed a deal to join Trinidad and Tobago's government owned Alutrint in a project to build 125,000 tonnes per year aluminium smelter in the Caribbean nation.
A Votorantim official said that the Brazilian industrial conglomerate replaces Venezuela based aluminium producer Sural which had 40% stake in the Trinidad project but withdrew due to financing problems earlier 2009.
Trinidad and Tobago government has a 60% stake in the smelter project.
Mr Marco Palmieri director of Votorantim Metais Aluminium Business said that "The project that is being signed with the government of Trinidad and Tobago unites the conditions to make this aluminium smelter one of the most competitive in the world, using the state of the art technology being provided by the Chinese."
Officials said that China Exim Bank is providing a credit facility of USD 400 million for construction of the project whose main contractor is CMEC also of China. The smelter complex is estimated to cost between USD 500 million and USD 600 million.
Mr Leroy Mayers chairman of Alutrint said that Trinidad and Tobago stands to benefit from increasing demand for aluminium products. He said that "It has become the world's second most used metal after steel
Reuters reported that Brazil's Votorantim Group has signed a deal to join Trinidad and Tobago's government owned Alutrint in a project to build 125,000 tonnes per year aluminium smelter in the Caribbean nation.
A Votorantim official said that the Brazilian industrial conglomerate replaces Venezuela based aluminium producer Sural which had 40% stake in the Trinidad project but withdrew due to financing problems earlier 2009.
Trinidad and Tobago government has a 60% stake in the smelter project.
Mr Marco Palmieri director of Votorantim Metais Aluminium Business said that "The project that is being signed with the government of Trinidad and Tobago unites the conditions to make this aluminium smelter one of the most competitive in the world, using the state of the art technology being provided by the Chinese."
Officials said that China Exim Bank is providing a credit facility of USD 400 million for construction of the project whose main contractor is CMEC also of China. The smelter complex is estimated to cost between USD 500 million and USD 600 million.
Mr Leroy Mayers chairman of Alutrint said that Trinidad and Tobago stands to benefit from increasing demand for aluminium products. He said that "It has become the world's second most used metal after steel
Gerdau Says Brazil Steel Capacity Double Local Demand
Dec. 9 (Bloomberg) -- Brazil’s steel output capacity is twice as much as domestic demand, Gerdau SA Chairman Jorge Gerdau Johannpeter said.
The country must make an effort to increase steel exports in view of low domestic demand, Gerdau Johannpeter told reporters in Brasilia today.
Crude steel production capacity in Brazil will rise 3.6 percent next year to 43.5 million metric tons, about double demand levels which are still recovering from the crisis, Flavio Azevedo, president of Brazil’s Steel Institute Aco Brasil, told reporters Dec. 2. In the medium-term, new mill projects including those announced by Vale SA will boost capacity further, particularly for the export market, he said.
Steel demand will climb 22 percent to 22.9 million tons from 18.8 million this year as orders grow from industrial segments including carmaking, according to the institute.
“There’s going to be steel to spare,” Azevedo said. “Brazil’s going to continue with high export levels.”
Steel exports from Brazil increased 3.3 percent this year and will grow an additional 16 percent to 11 million tons in 2010, according to the institute’s forecast.
Rio de Janeiro-based Vale is developing four steel projects in Brazil with a combined crude steel capacity of 15.5 million tons a year.
Diana Kinch
The country must make an effort to increase steel exports in view of low domestic demand, Gerdau Johannpeter told reporters in Brasilia today.
Crude steel production capacity in Brazil will rise 3.6 percent next year to 43.5 million metric tons, about double demand levels which are still recovering from the crisis, Flavio Azevedo, president of Brazil’s Steel Institute Aco Brasil, told reporters Dec. 2. In the medium-term, new mill projects including those announced by Vale SA will boost capacity further, particularly for the export market, he said.
Steel demand will climb 22 percent to 22.9 million tons from 18.8 million this year as orders grow from industrial segments including carmaking, according to the institute.
“There’s going to be steel to spare,” Azevedo said. “Brazil’s going to continue with high export levels.”
Steel exports from Brazil increased 3.3 percent this year and will grow an additional 16 percent to 11 million tons in 2010, according to the institute’s forecast.
Rio de Janeiro-based Vale is developing four steel projects in Brazil with a combined crude steel capacity of 15.5 million tons a year.
Diana Kinch
Chinese Group Buys Stake in MMX Steel
The Wuhan Iron and Steel Group, a Chinese steelmaker, agreed to pay $400 million for a stake in Brazil’s MMX Mineracao e Metalicos to broaden its supply of iron ore.
Wuhan Steel, based in Hubei province, will appoint two board members to MMX and become the second-biggest shareholder of the Brazilian company with a 21.52-percent stake, the Chinese company said. Wuhan Iron and EBX, MMX’s holding company, also signed an accord to build a steel plant in Brazil, a Wuhan Steel spokesman, Bai Fang, told Bloomberg News.
MMX, which is based in Rio de Janeiro, has a market value of 3.7 billion reais ($2.1 billion), according to Bloomberg data.
China, the world’s biggest steel producer, is investing in iron-ore projects globally to reduce dependence on Vale, the Rio Tinto Group and BHP Billiton. Wuhan Iron and EBX, MMX’s holding company, also signed an accord to build a steel plant in Brazil, said a Wuhan Steel spokesman, Bai Fang.
Wuhan Steel, based in Hubei province, will appoint two board members to MMX and become the second-biggest shareholder of the Brazilian company with a 21.52-percent stake, the Chinese company said. Wuhan Iron and EBX, MMX’s holding company, also signed an accord to build a steel plant in Brazil, a Wuhan Steel spokesman, Bai Fang, told Bloomberg News.
MMX, which is based in Rio de Janeiro, has a market value of 3.7 billion reais ($2.1 billion), according to Bloomberg data.
China, the world’s biggest steel producer, is investing in iron-ore projects globally to reduce dependence on Vale, the Rio Tinto Group and BHP Billiton. Wuhan Iron and EBX, MMX’s holding company, also signed an accord to build a steel plant in Brazil, said a Wuhan Steel spokesman, Bai Fang.
Recession Avoids Brazil
SAO PAULO (Dow Jones)Dec 9th --A year after one of the worst global economic crises in generations, Brazilians are celebrating the holidays by going on a massive shopping spree.
Retail sales in Latin America's biggest economy are looking so good that Brazil's finance minister, Guido Mantega, went so far as to express concern this week that retailers might run out of such big-ticket items as plasma television sets and refrigerators.
"There's over 100 million middle-class Brazilians shopping, and this holiday season is going to be very good as a result," he said.
The Sao Paulo Commerce Federation, Fecomercio, expects Brazilian retailers to sell at least 12% more than they did in December 2008, making it the best year for holiday sales since 1998.
Compare those numbers to the flagging figures from the developed world, including the U.S., the world's biggest consumer market, where early-December chain-store retail sales fell 1.3% from the week prior. As the U.S. makes its way out of recession, major retailers are looking at a tepid rise in traditional holiday-season spending of 1% to 2% over 2008 sales.
In Brazil, policy makers were quick to cut taxes on a number of home appliances early this year, giving people a reason to shop for big-ticket items. Some of those tax breaks are still in place, contributing to what has become a robust economic recovery.
Sales of refrigerators, microwaves and blenders are likely to rise 27% because tax cuts that reduced prices, according to Fecomercio. "I wouldn't doubt that stores really do run out of home appliances before this month is over," said Antonio Carlos Borges, executive director of Fecomercio.
Brazilian spending power has improved and stores are extending credit, and all that's going to make a difference this holiday season.
Interest rates are at their lowest levels in decades, with the benchmark lending rate at 8.75% annually. In addition to lower credit costs, real incomes have risen in comparison to 2008. In October, average national salaries rose 3.2% over inflation to 1,349.70 Brazilian reals ($771.25) per month, according to the Brazilian Census Bureau. September incomes rose 1.9% to BRL1,346 per month.
"Brazil today is enjoying a growth cycle that developed countries like the U.S. experienced a long time ago. While banks in other countries are financing a client's third car, or third mortgage, here in Brazil we are financing first homes, and first cars," said Ivan Monteiro, vice president of finance at Banco do Brasil (BBAS3.BR).
Grupo Pao de Acucar (CBD), also known as Companhia Brasileira de Distribuicao, says it expects LCD and Blue Ray DVD sales to rise 20% this Christmas over last year. Toy sales are seen rising 20% from the same period last year, with Disney (DIS) brand products being top sellers.
Stepping out of the Zelo bed-and-bath store in the Patio shopping mall, Catarina Furtado had her arms full with bags holding two new bedspreads. Furtado bought them as Christmas presents for her 9- and 4-year-old grandchildren, who are redecorating their bedrooms. Her other granddaughter, 5-year-old Ana Catarina, was already dressed for the season and looking more like a girl at Macy's in her plaid red-and-green Christmas dress than a Brazilian girl living on the Tropic of Capricorn.
Outside the mall, holiday displays featuring Santas dried off after a rainy day. Nearby, Adile Manfredini said her sisters were going to buy a refrigerator this holiday for her mother, who lives next door. "The prices are right. The payment terms are great. I'll definitely end up spending more this Christmas," Manfredini said.
The stars have aligned for Brazil this year, when it learned it will host both the World Cup 2014 and the 2016 Olympics. Its stock market has risen more than 75% year-to-date. Tax breaks have led to record-breaking car sales again this year, which is ending on a high economic note.
Mantega, the finance minister, said Wednesday the country's annualized growth in the second half should hit 8%. While that should cool off to 5% in 2010, it still far outpaces the sluggish 1.3% growth that the International Monetary Fund expects advanced economies to post next year.
Already the world's eighth-largest economy, Brazil has graduated from the investment narrative of being a pure commodities play and now also draws attention because of its increasing income and domestic spending levels, including the poor. Consumer spending over the 12 months ending in the second quarter of 2009 accounted for 62% of GDP, up from 60.7% at the end of 2008.
"Brazilians have more money, for once," said Alvaro Bandeira, director of Agora Corretora, a Sao Paulo-based brokerage. "They're going to spend it this Christmas, and it is going to be a good season for retailers, at least here in Brazil."
-By Kenneth Rapoza, Dow Jones Newswires
Retail sales in Latin America's biggest economy are looking so good that Brazil's finance minister, Guido Mantega, went so far as to express concern this week that retailers might run out of such big-ticket items as plasma television sets and refrigerators.
"There's over 100 million middle-class Brazilians shopping, and this holiday season is going to be very good as a result," he said.
The Sao Paulo Commerce Federation, Fecomercio, expects Brazilian retailers to sell at least 12% more than they did in December 2008, making it the best year for holiday sales since 1998.
Compare those numbers to the flagging figures from the developed world, including the U.S., the world's biggest consumer market, where early-December chain-store retail sales fell 1.3% from the week prior. As the U.S. makes its way out of recession, major retailers are looking at a tepid rise in traditional holiday-season spending of 1% to 2% over 2008 sales.
In Brazil, policy makers were quick to cut taxes on a number of home appliances early this year, giving people a reason to shop for big-ticket items. Some of those tax breaks are still in place, contributing to what has become a robust economic recovery.
Sales of refrigerators, microwaves and blenders are likely to rise 27% because tax cuts that reduced prices, according to Fecomercio. "I wouldn't doubt that stores really do run out of home appliances before this month is over," said Antonio Carlos Borges, executive director of Fecomercio.
Brazilian spending power has improved and stores are extending credit, and all that's going to make a difference this holiday season.
Interest rates are at their lowest levels in decades, with the benchmark lending rate at 8.75% annually. In addition to lower credit costs, real incomes have risen in comparison to 2008. In October, average national salaries rose 3.2% over inflation to 1,349.70 Brazilian reals ($771.25) per month, according to the Brazilian Census Bureau. September incomes rose 1.9% to BRL1,346 per month.
"Brazil today is enjoying a growth cycle that developed countries like the U.S. experienced a long time ago. While banks in other countries are financing a client's third car, or third mortgage, here in Brazil we are financing first homes, and first cars," said Ivan Monteiro, vice president of finance at Banco do Brasil (BBAS3.BR).
Grupo Pao de Acucar (CBD), also known as Companhia Brasileira de Distribuicao, says it expects LCD and Blue Ray DVD sales to rise 20% this Christmas over last year. Toy sales are seen rising 20% from the same period last year, with Disney (DIS) brand products being top sellers.
Stepping out of the Zelo bed-and-bath store in the Patio shopping mall, Catarina Furtado had her arms full with bags holding two new bedspreads. Furtado bought them as Christmas presents for her 9- and 4-year-old grandchildren, who are redecorating their bedrooms. Her other granddaughter, 5-year-old Ana Catarina, was already dressed for the season and looking more like a girl at Macy's in her plaid red-and-green Christmas dress than a Brazilian girl living on the Tropic of Capricorn.
Outside the mall, holiday displays featuring Santas dried off after a rainy day. Nearby, Adile Manfredini said her sisters were going to buy a refrigerator this holiday for her mother, who lives next door. "The prices are right. The payment terms are great. I'll definitely end up spending more this Christmas," Manfredini said.
The stars have aligned for Brazil this year, when it learned it will host both the World Cup 2014 and the 2016 Olympics. Its stock market has risen more than 75% year-to-date. Tax breaks have led to record-breaking car sales again this year, which is ending on a high economic note.
Mantega, the finance minister, said Wednesday the country's annualized growth in the second half should hit 8%. While that should cool off to 5% in 2010, it still far outpaces the sluggish 1.3% growth that the International Monetary Fund expects advanced economies to post next year.
Already the world's eighth-largest economy, Brazil has graduated from the investment narrative of being a pure commodities play and now also draws attention because of its increasing income and domestic spending levels, including the poor. Consumer spending over the 12 months ending in the second quarter of 2009 accounted for 62% of GDP, up from 60.7% at the end of 2008.
"Brazilians have more money, for once," said Alvaro Bandeira, director of Agora Corretora, a Sao Paulo-based brokerage. "They're going to spend it this Christmas, and it is going to be a good season for retailers, at least here in Brazil."
-By Kenneth Rapoza, Dow Jones Newswires
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