Brazil’s Minister of Mines and Energy, Alexandre Silveira, commended Guyana for how well it has attracted investment in its oil sector, a June 3 report by CNN Brazil said.
“Guyana has advanced very quickly in this geological region [the Equatorial Margin], which it shares with Brazil. This demonstrates unequivocally that Guyana has merit in attracting so much investment in these areas,” the Minister said, according to an unofficial translation.
He argued for Brazil to “mirror the speed” of Guyana in attracting investments, noting that Exxon closed its geology department in Brazil to invest in Guyana.
Silveira made these comments in response to an inquiry about his earlier remarks on Guyana, in which he said the rising oil power is “sucking the riches of Brazil through a straw” by tapping oil from the Equatorial Margin.
“What I have been fighting for is for Brazil to be able, while respecting environmental legislation, to advance in the exploration of the Equatorial Margin,” Silveira clarified.
Petrobras, the state-owned explorer, plans to invest US$3.1 billion to explore the Equatorial Margin in the 2024-2028 period. This represents 41.5% of its planned exploration investments for the period. Petrobras said it views the Equatorial Margin as a significant opportunity for oil exploration in Brazil, likening its potential reserves to the multibillion-barrel discoveries being developed by ExxonMobil in neighboring Guyana.
Offshore Guyana, an ExxonMobil-led consortium has sanctioned more than US$50 billion in oil developments and is contemplating additional projects. Exploration is also expected to expand as the government moves to award blocks to new explorers.
