Eni, Petrobras update partnership agreement

Italy's Eni and Petrobras of Brazil have renewed their commitment to work together on upstream and downstream operations, plus feasibility studies on renewables in Brazil and elsewhere.

Jul 8th, 2008

Uchenna Izundu
International Editor

LONDON, July 8 -- Eni SPA and Petroleo Brasileiro SA (Petrobras) renewed their commitment to work closely together on upstream and downstream operations, plus feasibility studies on renewables in Brazil and elsewhere.

The Italian major will offer its exclusive slurry technology to convert residues and heavy oils, typical of those produced in Brazil.

Eni Chief Executive Paolo Scaroni and Josè Sergio Gabrielli, chief executive of Petrobras, signed the latest agreements at the World Petroleum Congress in Madrid. The first memorandum of understanding was signed in Brazil in early 2007 (OGJ, Mar. 30, 2008, Newsletter).

Both companies will study the valorisation of the natural gas reserves recently discovered by Eni off Brazil, particularly in the Santos oil basin.

Brazil has proven oil reserves of 11.5 billion bbl and proven natural gas reserves of 320 billion cu m. Hydrocarbon production, currently 2 million b/d and about 12 billion cu m/year of natural gas, will continue to grow due to encouraging exploration results, particularly offshore.

Eni has four offshore exploration blocks in Brazil along with a 30-year concession granted in 1999 to distribute natural gas in the northwest area of São Paulo state. Over the years, Saipem and Snamprogetti have jointly contributed to the building of numerous facilities in the oil sector, such as the refineries in Belo Horizonte, Porto Alegre, and São José dos Campos and some floating production systems.

Contact Uchenna Izundu at uchennai@pennwell.com.

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