Petrobras of Brazil to Expand its Presence in Angola

Petrobras 02-16-2007

Brazil’s state oil company, Petrobras plans to increase its international activities and Angola is one of its targets in that strategy, the company's financial director. Almir Barbassa said in Sao Paulo.

“It is certain that we want to grow internationally. Angola’s geography is similar to Brazil’s and they also speak Portuguese. Petrobras has all the conditions to grow in Angola,” said Barbassa at a press conference to present 2006 results.

The Brazilian state company has been in Angola since 1979, but, according to Barbassa, its only bloc in the country has declining production levels.

“Bloc 2 was already producing when we went in there. Today, more than 20 years later, it is at the end of its life,” he said.

“Angola has increased its production, many companies have been successful and we want to be there in a stronger way. Therefore, we have acquired the exploration rights of four more blocs,” he said, mentioning an agreement signed with the Angolan authorities in November 2006.

Brabassa said however, that there was no news about the Angolan market and added that any new acquisitions would depend on an assessment of the blocs offered.

Petrobras announced it had posted record profit of 25.9 billion reals in 2006, a rise of 9 percent against 2005.