RIO DE JANEIRO – Current global oil prices should lead companies operating in Brazil to better plan their field developments, Magda Chambriard, president of oil industry watchdog ANP, said on Tuesday.
“The actual price of a barrel of petroleum demands more dedication to planning in the industry, which means that this is the moment to improve operationally,” she said at an event in Rio de Janeiro, where the watchdog is also based.
The price of benchmark Brent crude oil has fallen by about half in the last year, slashing revenue across the industry. On top of that, leaders at IBP, the group that represents oil producers in Brazil, has also criticized government policy for making oil exploration and production less attractive in the country.
Chambriard also said that the weak interest in buying Brazilian oil and natural gas exploration and production rights at the government’s 13th round of concession auction earlier this month was unexpected.
The auction was seen as a test for how Brazil’s oil industry would respond to recent downturns in prices, the country’s recession and an regulatory environment many industry groups consider increasingly uncertain.
Still, only 37 of 226 blocks on offer were sold and six of 10 basins received no bids at all.
(Reporting by Marta Nogueira; Writing by Guillermo Parra-Bernal and Jeb Blount; Editing by Chris Reese and Diane Craft)
This article was from Reuters and was legally licensed through the NewsCred publisher network.