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Petrobras promises to expand and increase investments in Argentina

Saturday, April 21st 2012 - 06:44 UTC
Full article 9 comments
Brazilian Mining and Energy Minister Edison Lobao host De Vido Brazilian Mining and Energy Minister Edison Lobao host De Vido

Brazil’s President Dilma Rousseff following a meeting with an Argentine delegation from the energy sector ratified her country’s decision to “strengthen the investment and the presence of the oil company, Petrobras, in Argentina”.

President Rousseff held a half hour meeting on Friday at the Planalto Palace with the visiting Argentine delegation headed by Planning Minister Julio De Vido and which also included Ambassador Luis María Kreckler and Energy Secretary Daniel Cameron. Brazilian Mining and Energy Minister Edison Lobao, host of De Vido also attended.

The meeting with President Rousseff was the culmination of the Argentine delegation’s visit to Brazil to consider the consequences of the YPF nationalization and discussions with Petrobras, the oil giant that has considerable interests in Argentina and recently had concessions suspended by a provincial government.

Authorities in Neuquen rescinded concessions on three fields citing insufficient investment, affecting Petrobras, Techint Group's Tecpetrol and Argenta Argentina. “Insufficient investment” is at the heart of the argument to nationalize YPF.

Earlier in the day President Rousseff stated that “Brazil does not interfere on other countries’ domestic issues”. She was referring to the Argentine government plans to seize a majority stake in YPF from Spain’s Repsol.

“I was telling the Minister (Edison Lobao, Energy Minister) that Brazil does not intervene on other countries domestic issues,” she said in a ceremony for diplomat graduates in Brasília. “In no manner, shape or form we will interfere, judge or express opinions about it” insisted the chief of state.
During a press conference in Brasilia, De Vido assured ”YPF will have a professionalized (non political) management” and insisted that “the region is going through a historical and totally different moment so the new YPF and Petrobras should work together and do business together,” he stated.

Lobao also present at the press conference announced that Brazil and Petrobras are “committed to increase their investments in Argentina’s hydrocarbons’ industry”.

“The Argentine government has requested us to increase our investments in Petrobras Argentina and we will do so as far as we can”, said Lobao publicly who nevertheless cautioned that Petrobras is limited because of its ambitious exploration and exploitation commitments in the country’s new deposits.

Lobao said that Petrobras investments in Argentina for this year totalled 500 million dollars, similar to 2011, but given the ‘new situation’ and a specific request from Argentina, “we will make all efforts possible to increase that figure”.

On his side De Vido denied point blank that the higher investments requested from Petrobras had the purpose of replacing the exit of Repsol.

“Petrobras is replacing nobody” said De Vido who argued that the greater cooperation is part of the new scenario in South America and means “for the two countries the challenge of jointly making business both in Argentina as well as in the region”.

De Vido forecasted that Petrobras share of the retail fuels’ market in Argentina could rapidly jump from the current 8% to 15%.

Top Comments

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  • Think



    We are talking about 2~3 billion US$ of new BRAZILIAN investments in the next 12 months...............

    What a great week!

    Unasur para todo el mundo.......

    Apr 21st, 2012 - 07:04 am 0
  • reality check

    You have to hand it to the Brazilians, they are not stupid. They know when the Argentines fuck up, they are going to have to get their fuel from somewhere. Laughing all the way to the bank. One tip though, get the cash up front first and make sure it's $US.

    Apr 21st, 2012 - 07:06 am 0
  • Conqueror

    This was to be expected. Argies don't have the ability to operate any commercial business properly. Their character and lack of intelligence is against them. Despite De Vido's words, politics will always be a motivation. Once having nationalised, CFK will HAVE to show that YPF can be operated better under her control. Watch out for stuff going missing and a whole raft of “explanations” for everything that happens. You can bet that all those “explanations” will blame Repsol.

    So argieland has rushed to Brazil begging for help because it knows it cannot run YPF itself. You can also bet that there will be massive “environmental cleanup” costs in order to reduce any compensation argieland is forced to pay to Repsol. But, as you say “rc”, Brazil will be laughing all the way to the bank.

    Apr 21st, 2012 - 10:38 am 0
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