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Brazil's Petrobras says not interested in Venezuelan gas project
RIO DE JANEIRO
Petroleumworld.com 11 14 07
Brazil's Petrobras will not participate in Venezuela's Mariscal Sucre
offshore gas project because it is not clear how it could profit from the
project, a Petrobras spokeswoman said Tuesday, citing company CEO Jose
Gabrielli.Petrobras had been considering acting alongside Venezuela's state-run
PDVSA at Mariscal Sucre, offshore Venezuela's eastern coast. But Petrobras
hoped that Venezuela would allow a major LNG terminal to ship natural gas to
Brazil from the area.PDVSA has estimated the area will produce an initial 34 million cubic
meters/day when it is developed, with potential to ramp up production further.The government of President Hugo Chavez has been pushing for Mariscal
Sucre gas to be used in domestic industry, at least initially, including for
the country's future extra-heavy oil field developments.In Venezuela, gas and liquid fuels are highly subsidized, and it is
unclear whether Petrobras could profit from selling Mariscal Sucre gas inside
Venezuela.According to PDVSA's website, the Venezuelan company is still looking to
eventually build an LNG export terminal at a cost of up $2.7 billion to ship
some Mariscal Sucre gas to other countries.Another option for the Mariscal Sucre gas had been to supply a
mega-pipeline to pump gas to Brazil and eventually to other countries in South
America's Southern Cone.However, while it has not publicly ruled out those plans, Petrobras has
balked at the high costs, logistical challenges and environmental risks
involved in such a pipeline.Brazil is considering buying more natural gas from Bolivia, currently its
largest supplier, and boosting its own gas production to meet rising domestic
demand.
Story from Platts 13 11 07
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