Petrobras and Vale announce partnership in natural gas exploration in Brazil

26 June 2009

Sao Paulo, Brazil, 26 June – Brazil’s two largest companies, state oil company Petrobras and mining company Vale, Thursday announced a deal for natural gas exploration, in the southeast of Brazil, Petrobras said in a statement.

The agreement includes exploration of three blocks, on the coast of the state of Espírito Santo, at a depth of up to 2,000 metres, above the pre-salt layer, where enormous reserves were recently found.

The three oil blocks were acquired by Petrobras in a public tender launched by the National Oil Agency (ANP), the Brazilian oil sector regulator, in 2005.

According to the deal, Vale will have the right to use all the gas extracted by Petrobras in those three blocks to produce electricity at its industrial facilities in the region.

Currently, Vale has stakes in the exploration of 26 oil blocks, 22 of which in partnership with Petrobras, on the Brazilian coast.

Located in 150 million year old sedimentary basins at great depth and over a distance of 800 kilometres, the Brazilian reserves may total 80 billion barrels of oil and gas, according to ANP. (macauhub)