MercoPress. South Atlantic News Agency

Full scale military exercise to defend Brazil's offshore oil

Brazil announced Friday it will hold military exercises next month to show its capability of defending new offshore oil reserves that could convert the country into a global energy player.

Government managed Petrobras made headlines last November when it discovered a deposit with estimated reserves of 5 to 8 billion barrels, the world's second-biggest discovery in 20 years. The find could make Brazil one of the top 10 producers in the world, Petrobras said. Since then the political establishment and military officers have raised concerns that other countries could possibly challenge Brazil's sovereignty over the reserves. "We don't have a likely challenger or enemy. Within a modern view of planning, you send a signal to the international community -- I am prepared" said Admiral Edlander Santos, who will command the maneuvers. Interviewed by Reuters the admiral said "it's an important sign because it prevents people from turning into possible challengers". Admiral Santos downplayed the reestablishment of the United States Fourth Fleet 58 years after the US Navy had decommissioned it. The Fourth Fleet is to help combat drug trafficking and offer humanitarian relief in Latin America and the Caribbean. US has said it would respect Brazil's territorial seas and exclusive economic zones, which include the oil reserves. As part of Operation Atlantic exercise on September 12-26, the Brazilian armed forces will simulate an attack by a fictitious enemy on oil drilling facilities such as platforms and pipelines in Rio de Janeiro, Sao Paulo and Espirito Santos states and off shore The 12.3 million US dollars exercise will include 20 ships, several submarines, 9,000 troops and as many as 50 aircraft. "It's not an expense, it's an investment," Santos said. "It's like house insurance. The cost is cheap compared to the need to protect our sovereignty". By 2017 Petrobras plans to have 63 drilling rigs in deep and ultra-deep waters, which are double the amount it currently has in operation, revealed Petrobras' CFO, Almir Barbassa in a recent shareholders meeting. The corporation's oil and gas production stands at 2,175,000 bpd; 1,846,000 bpd of derivatives plus a 6% increase in natural gas production. Operation Atlantic will also give an idea of the growing list of new equipment Brazil's military will need to defend its offshore resources, its main defense priority along with a porous border in the Amazon jungle. Brazil already was building two and ordering five more of the 27 new patrol ships it needed to defend the offshore oil industry, said Admiral Santos. As part of a broader program to upgrade its armed forces, Brazil forged a strategic defense alliance with France to build a nuclear-powered submarine and 50 military helicopters.