Brazil: Petrobras may account for 10 pct of Brazilian GDP in 2020

25 August 2008

Sao Paulo, Brazil, 25 Aug – The weight of Brazilian oil and fuel giant Petrobras in Brazil’s economy may double over the next decade and reach 10 percent of the country’s gross domestic product (GDP) if the company’s production increases in line with estimates published in the Brazilian press Sunday.

According to na article in newspaper Folha de S.Paulo, citing a study from the National Economy Institute of the Rio de Janeiro Federal University, the weight of Petrobras in Brazil’s GDP could rise from its current 4.7 percent to 7.19 percent in 2020, in a worst case scenario, or to 11.52 percent , in a best case situation.

The university study forecast for three different scenarios, based on the price of oil at US$80 per barrel, US$100 per barrel and US$120 per barrel.

The study used the same estimated production by Petrobras for all thre scenarios: 2.3 million barrels in 2010, which rise to 3.5 million in 2015 and 5 million in 2020. (macauhub)