Brazil is expected to join the OPEC+ group of oil-producing countries, but will not participate in the group’s coordinated production limits, said Petrobras (PETR4.SA) CEO Jean Paul Prates to Reuters.
The surprising announcement from the group on Thursday (30) that the South American country would join them raised immediate questions about whether Brazil would participate in the production limits, as OPEC+ countries have agreed to voluntary cuts of about 2 million barrels per day (bpd) starting early next year.
“There is no quota,” Prates said in an interview. “We would never be part of an organization that imposes quotas (on production) on Brazil; Petrobras is a publicly traded company, and we cannot have quotas.”
The Brazilian Minister of Energy said on Thursday that the country was eager to join OPEC+ after a thorough technical analysis. President Luiz Inácio Lula da Silva’s office confirmed receipt of the invitation but stated that it had not yet responded formally.
Brazil is the largest oil producer in South America, with 4.6 million barrels per day of oil and gas, of which 3.7 million bpd are crude.
Prates, who hosted OPEC Secretary-General Haitham Al Ghais in Brazil in October, emphasized that OPEC+ is a group that includes countries without voting rights and to which production limits are not imposed, which would be the case for Brazil.
He welcomed Brazil’s decision to join the group.
“Brazil will begin to participate in meetings as a sort of observer member, which I consider very good,” Prates said, adding that the measure would be crucial for the energy transition efforts of both OPEC and Brazil.
He expects Brazil to formally accept the invitation by June.
Source: Reuters