Onshore will receive $ 4 billion per year, projects MME

 

August 23, 2019

Brazil will reach production of 500,000 barrels per day of oil and natural gas in 2030 with the measures implemented by the New Gas Market and the Revitalization Program of Exploration and Production of Oil and Natural Gas in Terrestrial Areas (Reate 2020) . The promise is from the Minister of Mines and Energy, Bento Albuquerque, during the launching ceremony of Reate 2020.

The MME projects that investments in exploration and production of oil and gas onshore will go from the current level of $ 1.6 billion annually to about $ 4 billion per year, with the prospect of creating approximately 700,000 jobs. “Thus, by 2030, the onshore (land) will receive $ 40 billion in new investments,” added the minister.

To achieve production and investment volume, the MME program will work on five fronts to unlock investments. The first front will discuss how to improve regulatory management seeking to simplify, streamline and make the industry permanently open to technological innovation. Representatives of the Ministries of Mines and Energy, Economy, Civil House, EPE, Abipip, IBP, Firjan and Onip participated in the discussions.

Abpip’s executive secretary, Anabal dos Santos Júnior, will coordinate the work front that intends to create an integrated organization to facilitate dialogue with economic agents in the oil and gas chain and with formulators and executors of public policies.

EPE will be responsible for identifying and monetizing the onshore gas production potential in Brazil. Both conventional and unconventional natural gas potential in the country will be under consideration, opening the discussion of licensing with the participation of Ibama.

There are already clear examples of success in the country in projects to use terrestrial gas for energy production. Eneva received from the Ministry of Mines and Energy (MME) the approval of the Parque dos Gavião project, the natural gas and energy production center, operated by the company in the Parnaíba Basin. Prioritization is required for issuing infrastructure debentures to fund the project, which guarantees a number of advantages for investors, such as income tax exemption.

Imetame is operating the Cardeal Amarelo and Cardeal Nordeste fields, both in the Recôncavo Basin, which will be suppliers of natural gas for the thermal Prosperidade I, with capacity to produce 28 MW, which is installed in the city of Camaçari, Bahia. This will be the first gas to wire project in Bahia.

Alvopetro will build a gas pipeline to connect the Caburé field in Camaçari (BA) and allow the transport of natural gas to Bahiagás, the state’s distributor. The project already has environmental licensing to start the works.

Onip will be responsible for studies to increase industry diversity and attract companies especially active in the various countries of the Americas. MME and Economics, as well as IBP and Abpip also participate in the discussions, which intend to expand both the number of operators and service companies.

According to ANP data, the mature onshore basins (Espírito Santo, Potiguar, Recôncavo, Sergipe and Alagoas) produced 103.6 Mboe / day in June, with 81.9 barrels per day of oil and 3.5 million m³ / day of natural gas day. Of this total, 97.1 thousand boe / day were produced by Petrobras.

The Ministry of Economy will coordinate Reate’s last working group, which intends to formulate incentive measures for competitive practices on marketing conditions and attracting investments from new agents. Cade joins this discussion front that will put on the table the price practiced by Petrobras in the acquisition of oils sold by small and medium producers, who complain of a strong discount made by the oil company compared to market prices.

Source: epbr

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