Brazil produced 1.018 billion barrels of oil in 2019, 7.78% more than the previous year, marking the first time the South American nation passed the billion-barrel mark for annual production, the national oil regulator Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) said. December also had a record of 3.106 million barrels per day, up 0.52% from the previous month and up 15.44% from December 2018.
Brazil’s Minister of Mines and Energy, Bento Albuquerque, said in New Delhi that during his trip to Saudi Arabia next July he will begin discussing possible membership to the Organization of Petroleum Exporting Countries (OPEC). Brazil aims to become one of the top five exporters of oil in 10 years, Albuquerque said during an official visit to India where Brazilian oil exports fell 23% in 2019.
Brazil’s state-run oil firm Petrobras has lost an appeal over R$9 billion ($2.14 billion) of disputed taxes, but it will “take the appropriate judicial measures in its defence,” the company said. The procedures refer to the collection of taxes on remittances sent abroad for the payment of freight contracts in the years 2011 and 2012.
Brazilian state prosecutors on Tuesday charged Fabio Schvartsman, the former chief executive of mining giant Vale SA, and 15 other people with homicide for a dam disaster last year that killed more than 250 people. Vale and TUV SUD were also charged with environmental crimes. Vale shares were down 2.5% in Sao Paulo yesterday trade.
Chinese beef importers are seeking to renegotiate prices previously agreed when they closed deals to buy dozens of shipments from Brazil. Some of them are refusing to pay for shipments that already arrived in China. Brazilian beef exports to China increased more than 50% last year helping beef prices in Brazil to reach an all-time high.
Brazil meatpacking Marfrig Global Foods said on Monday that it had concluded early repayment of its most expensive debt, $446 million in bonds due in 2023. The bonds had an annual interest rate of 8% and had been issued in 2016. Early repayment was in line with a cost-cutting strategy, according to Marfrig.
Brazil’s state-run oil company Petroleo Brasileiro (PETR4.SA) has begun the “non-binding phase” of the process of selling its remaining 10% stake in its former pipeline subsidiary Transportadora Associada de Gás (TAG). Petrobras sold a 90% stake in TAG to Engie’s (ENGIE.PA) Brazilian subsidiary and Canadian investment fund Caisse de Depot and Placement du Quebec (CDPQ) in April for $8.6 billion.
Sao Paulo-based beef giant Minerva SA is withdrawing a planned IPO of Athena Foods in Chile amid market turmoil and economic uncertainties in Argentina. A trading debut in Chile was part of Minerva’s strategy to lower debt. Instead, the company opted to sell shares in Brazil.
Petroleo Brasileiro has put up for sale its entire stake in the Golfinho and Camarupim deepwater clusters in the Espírito Santo basin. Petrobras holds 100% interest in both concessions, with the exception of exploratory block BM-ES-23, in Golfinho, where it owns 65%. Brazil’s state-run oil company has been selling assets in order to lower its debt.
Brazilian sugar mills are considering increasing their raw sweetener output at the expense of ethanol for automobile fuels after sugar futures surged to a two-year high this week, according to analysts. Raw sugar futures for March delivery in New York have climbed 9.1% since Jan. 2. Only 34% of the cane was used this season to produce the sweetener with the rest going to ethanol as demand and prices for the biofuel have increased.