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SOUTH AMERICAN ENERGY MARKETS DAILY ROUNDUP (April 17, 2009): Petrobras’ Gabrielli sees “political component” in the reduction of gasoline and diesel prices at the pumps

April 17, 2009

South America Energy Markets (SAEM) publishes a daily roundup of the top-five stories affecting energy markets in the region with links. The roundup includes all the major web dailies of South America and other websites that write about the region’s energy markets.  SAEM Daily Roundup appears from Monday through Friday and is published by noon London time.

Friday, April 17, 2009


Petrobras chief executive, Jose Sergio Gabrielli, told reporters at the World Economic Forum in Rio de Janeiro that while the price of gasoline and diesel at the pumps hinges on global crude prices, any reduction of such prices will have a political component due to its impact on the economy. Petrobras’ CEO, who suggested that prices at the pumps comprise of many factors and not solely  on crude prices, said that the most recent light-oil discovery in the ultradeep waters of the Santos Basin at the Iguazu well (BM-S-9) (see South American Energy Markets Daily Roundup, April 16, 2009) reinforces Brazil as a future  global oil market player.


Perupetro has signed 13 concession contracts worth $650 million with92  energy companies to carry out upstream exploration in the country, writes Lima daily El Comercio. President Alan Garcia said that the concessions are an example of the “confidence” that foreign investors have in Peru. Minister of energy and mines, Pedro Sanchez, said that the country will soon become an oil exporter due to the rise in upstream exploration. Peru will launch in July another tender for 12-13 blocks, Petroperu president, Daniel Saba. was quoted as saying.


A poll carried out by Portal CanalEnergia reveals that 52% of those polled believe that the new Gas Law (see SAEM, March 10, 2009) will attract more investments to the country, while 37% said it would only do so in some sectors. Eleven percent that took part in the survey believed the new law would not have any impact on investments. Some important points of the new law are that it grants private energy companies the right to have concessions for up to 30 years to build and operate a trunkline, construct and manage regasification and liquefaction plants as well as export and import gas.  Another important point of the law is third-party access to trunklines.


The President of Brazil, Luiz Inacio Lula da Silva, and his Peruvian counterpart, Alan Garcia, will sign on April 28 a memorandum of understanding to build six hydropower plants at the border of their countries, writes Cochabamba daily Opinion. The cost of building the power plants is seen at $4 billion. “The memorandum (of understanding) will help define aims between Eletrobras and Electroperu to build this hydropower project that will help in principle to satisfy (growing power) demand in Brazil, ” said Peruvian Foreign Minister Antonio Garcia Belaunde.


Owing to protests by household consumers of a new round of gas-tariff hikes by the government, gas regulator Enargas was quoted as saying in state-owned news agency Telam that it is “incorrect” that the government has given the green light to new tariff hikes of 10%-30% (see South American Energy Markets Daily Roundup, April 17, 2009). Enargas said that the new hikes for Metrogas, Gasnor, Cuyana, Camuzzi Pampeana and Camuzzi Sur form part of a plan last year to ok new gas tariff hikes for the five distributors.  The new tariff schemes will come into force when they are officially published by the gas regulator.

These briefs can be reprinted as long as the source is cited.

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