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Saudi Aramco is at the disposal of Petrobras
SAO PAULO
Petroleumworld.com 11 14 07
The charges d'affaires at the Saudi embassy in Brazil, Omar Ali Saleh Al-Oyaidi, stated yesterday (12) that the Saudi government's Saudi Arabian Oil Company (Aramco) is at the disposal of Brazilian oil company Petrobras to help in the development of new oil and gas reserves recently discovered in Santos basin. The statement was made during the Bilateral Trade and Investment Seminar Between Brazil and Saudi Arabia, promoted by the Federation of Chambers of Foreign Trade (FCC), in Rio de Janeiro.The new Brazilian reserves are estimated at between 5 and 8 billion barrels, which, according to the Petrobras, would place the country in the eighth or ninth position in the ranking of main oil reserves in the world. This volume is also enough for Brazil to expand production by 50%. Currently, the country's reserves are around 14 billion barrels.
Saudi Aramco produces around 9 million barrels of oil a day and controls the largest stocks of the commodity on the planet, as Saudi Arabia has around 25% of global oil reserves. The company employs over 51,000 people. Just to give an idea, the Saudi oil reserves are 260 barrels.
According to the secretary general at the Arab Brazilian Chamber of Commerce, Michel Alaby, who participated in the event, Al-Oyaidi also said that his country is prepared to simplify the concession of visas to Brazilian businessmen. In his address, Al-Oyaidi also discussed the growth of Brazilian exports to the Arab country and the importance of the Summit of South American - Arab Countries, which took place in 2005.
According to FCC president João Augusto de Souza Lima, this is the first time that the organisation promotes a seminar about an Arab country. In total, 31 seminars have already been promoted. "Saudi Arabia has very great potential," he said. The objective of the meeting was to present the Saudi market and to show investment opportunities in the country to Brazilian businessmen.
From January to October this year, Brazilian exports to Saudi Arabia generated US$ 1.2 billion, representing an increase of 3.4% over the same period last year. The main products shipped to the Arab country were chicken, iron ore, sugar, beef, tractors and aircraft. Brazilian imports from the Arab country, in turn, reached US$ 1.47 billion, a reduction of 2.8% in the same comparison. Oil, liquefied gas, diesel oil, aluminium and sulphur were the main products purchases by Brazil from Saudi Arabia.
In Alaby's presentation, he also spoke about the business opportunities in the Arab country and about the main markets that the Brazilians should seek on the Saudi market, like furniture and decoration objects, auto parts, textiles, agricultural machinery and equipment in general. Alaby also spoke about the mission to the Gulf that the Arab Brazilian Chamber is going to promote between November 18th and 30th.
According to Alaby, the seminar also discussed the problems of dual income tax faced by companies operating in both countries. The tax ends up being charged by both governments. The solution, according to him, is the signing of a bilateral agreement to eliminate this charge.
*Translated by Mark Ament
Story by Marina Sarruf from ANBA
- marina.sarruf@anba.com.br
ANBA 13 11 07
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