Brazil confident since pre-salt oil is profitable at $60 a barrelStaff writer ▼ | December 15, 2014
The head of Brazil's National Petroleum Agency Magda Chambriard said that the country's oil production projects remain robust even as international prices for crude continue to tumble.
Oil industry Magda Chambriard:
"I don't know of any pre-salt project that cannot resist the 70 dollar or even the 60 dollar mark," said Ms. Chambriard during an innovation and research ceremony.
"We still have very robust projects. When we're talking of projects with investments of 5 billion dollars, we are also referring to projects with large scale profits. We have big lungs," insisted the official.
Petrobras, Brazil's giant oil and gas corporation is sole operator for the pre-salt reserves and enjos a guaranteed minimum participation of 30% in each exploration bloc in partnership with foreign firms including Shell and Total and two Chinese companies.
The pre-salt has gigantic areas "capable of attracting everybody in the world," added Ms. Chambriard.
With oil prices diving to their lowest level in five years and Brazil's currency also sliding, analysts say Petrobras is likely to encounter difficulty maintaining its current pace of investments in the "pre-salt" deposits in the Atlantic. ■