Petrobras plans oil subsalt extraction in Brazil with Odebrecht rigs

October 19th, 2010 - this article is free to republish with open public license

Brazzilian state oil company Petrobras has a five year goal to turn Brazil into a major oil exporter by developing the reserves buried deep under the ocean floor in a region known as the subsalt.

Subsalt refers to oil prospects that lie below a salt layer. A significant proportion of the world’s hydrocarbon reserves are found in structures related to salt tectonics, including many in the Middle East, the South Atlantic passive margins (Brazil, Gabon and Angola) and the Gulf of Mexico.

Brazil Subsalt Oil Extraction

“This represents the most important step in the growth of OOG,” the company said in a press release, referring to Odebrecht Oleo e Gas.

That division plans to invest $3. 5 billion over the next three years to tap into Brazil’s booming oil services market, which is slated for expansion as the country taps deep water oil reserves off its coast.

It has placed orders with Brazilian engineering firm Odebrecht to build five rigs. This is part of an initiative to buy most of its offshore equipment from domestic suppliers in order to support the naval industry and boost the domestic economy.

Petrobras is the worlds second-largest public listed company, the largest company in Latin America by market capitalization and revenue, and the largest company headquartered in the Southern Hemisphere by market value. The company was founded in 1953, mainly due to the efforts of then Brazilian President Getulio Vargas. While the company ceased to be Brazil’s legal monopolist in the oil industry in 1997, it remains a significant oil producer, with output of more than 2 million barrels of oil equivalent per day, as well as a major distributor of oil products.

Odebrecht is a Brazilian business conglomerate in the fields of Engineering & Construction and Chemicals & Petrochemicals. The company was founded in 1944 and the group is present in South America, Central America and the Caribbean, North America, Africa, Europe and the Middle East.

The conglomerate’s corporative structure is composed of five operating or support companies. The operating companies are Construtora Norberto Odebrecht S. A. , its engineering and construction company, based in Rio de Janeiro and Braskem its chemicals/petrochemicals company, based in Sao Paulo.

Date October 19, 2010