Brazil : Investments in renewable energy (Luis Ini)

According to a report prepared by Ernst & Young, Brazil is ranked 10th in the list of most attractive countries for investments in renewable energy (renewable energy country attractiveness indices). It has climbed a place on the previous quarter and is eight up compared with the third quarter of 2010. The improvement in Brazil’s position is mainly due to developments in the wind sector.

The report highlights that the third quarter of 2011 was a good time for wind energy developers in Brazil, with four power auctions providing opportunities to reshape Brazil’s electricity market. Wind power attracted the most attention when it emerged that, for the first time, its price had fallen below that of electricity generated by natural gas.

“The ranking shows the maturity of the wind industry in Brazil’s energy matrix,” explains Luiz Claudio Campos, Transactions Partner in Ernst & Young Terco. “Exactly a year ago, Brazil was ranked 18th. In the near future, the country could occupy a higher position, probably due to the wind sector.”

The sector secured power purchase agreements for 78 projects totalling 1,929MW at the auctions, around half the total available capacity. They must start operating in 2014.

Less than 10 days later, Brazil’s Ministry of Mines and Energy scheduled another auction for December. It will award 20-year contracts for wind, biomass and natural gas plants, and 30-year contracts for hydroelectric plants. It has attracted registration from 377 projects totalling 24.3GW installed capacity, of which 79% with a total capacity of 7.5GW relate to wind. Another auction will be held on 22 March 2012.

The 2011 auctions have proved that wind and natural gas plants can compete directly, and that wind power can be cheaper.

According to Agência Nacional de Energia Elétrica, the Brazilian regulatory agency for the electric energy market, Brazilian wind power capacity is on track to grow by 600% by 2014 to more than 7GW, compared with around 1GW at the end of 2010.

The market analysts suggest several reasons for the country’s success, including the recent arrival of Chinese equipment suppliers, who can force local suppliers to lower their prices to remain competitive. The low cost in the auction may also be the result of a growing number of turbine manufacturers in Brazil.

"On the other hand, the economic crisis caused several projects in Europe to be halted, which may have prompted investors to move into other markets with growth potential like Brazil," explains Campos.

Challenges ahead

Nonetheless, Ernst & Young stresses that the industry faces several challenges. The auctions have created competition across the energy sector, and a strong project portfolio with particular emphasis on wind. Abeeolica (the Brazilian Association of Wind Power) has warned though that lower return margins could make projects vulnerable to possible complications during construction.

Brazil’s future electricity planning also needs to reflect the auctions’ positive outcome to ensure long-term investor confidence, and stakeholders will be watching closely to see if the Government introduces the long-term policy framework needed to sustain investment.

The renewable energy country attractiveness indices include and analyse renewable energy markets in 40 countries every three months. China currently occupies first place, followed by the US, Germany, India, Italy, the United Kingdom, France, Canada and Spain.

Jordan's shale oil production (Ian MacInnes)

Since the beginning of 2011 the Sinai Peninsula pipeline has been attacked no less than seven times since the fall of Hosni Mubarak with the most recent attack taking place on 10 November when two improvised explosive devices were reportedly detonated remotely near the town of Al-Arish. The reasons for the campaign against the Sinai Peninsula pipeline could be one or a combination of issues. For instance, many Egyptians are disgruntled with the deal that Mubarak cut with Israel, Bedouin tribes living along the route of the pipeline have been less than happy with the payments they have received for routing the pipeline through their territory, Islamic insurgents or simply something that has just not come up on the radar yet. Indeed, Bedouin tribes were reported as making threats against the pipeline in 2010. The fact is that with seven disrupting attacks on the natural gas pipeline and, with the Egyptian people looking to be heading for an Arab Spring part two scenario, Jordan would do well to consider and implement alternatives quickly. Egypt, even in the throes of its internal troubles, would be wise to secure the Sinai Peninsula pipeline’s flow for much-needed revenues or one day, the customers will have gone elsewhere. Potentially costly legal action has already been instigated in October 2011 by Egyptian Mediterranean Gas, which is part owned by Ampal-American Israel Corp.

Jordan has had to switch its power stations over to diesel fuel in the absence of a reliable supply of natural gas and the cost has been heavy. Jordan’s National Electricity Company reported recently that the total losses due to the natural gas supply disruptions to its power plants have cost around US$1bn up until September 2011 and local media have estimated that the cost up to October is around US$1.2bn.

While many neighbouring countries have substantial fossil fuel reserves to exploit Jordan has, right now anyway, but one, shale oil. Shale oil needs energy to release energy as the shale has to be heated for the oil to flow and it is a trade-off as to whether the amount of energy required and the positive difference in price of the energy released makes the project worthwhile. However, surface mining can be a viable way forward although. For deeper shales, hydraulic fracturing (fracking) is another option. The shale oil reserves in Jordan have been conservatively pegged at around 500bn barrels with viability to extraction price reportedly around US$65/bbl. Of course, not all of this resource can be extracted and it is possible that the estimated reserves could be less or perhaps a great deal more. Whatever the case, Jordan has fossil fuel reserves that could help if move significantly if not totally, along with nuclear and solar power options, towards the utopia of energy self-sufficiency.

Many energy companies are already active in Jordan including, Karak International Oil (KIO), Royal Dutch Shell, Petrobas and oil shale specialist Eesti Energia which has a subsidiary operating in Jordan, Jordan Oil Shale Energy Company (JOSEC). Towards the end of 2010, Eesti Energia said that it had signed an agreement whereby Near East Investment (NEI) and YTL Power International Berhad (YTLPI) will own 5% and 30% of Eesti Energia oil’s shale projects in Jordan with the Estonian based company retaining 65%. The company already has an agreement with the Jordanian government for surface mining at the Attarat um Ghudrun oil shale deposit, which is probably the largest in Jordan. The Eesti Energia partnership, under the first oil shale concession to be granted in Jordan, is planning to construct a 38,000bpd oil plant along with a 900MW shale oil power station at Attarat um Ghudrun, which when built, will be Jordan’s first self sufficient fuel power station and probably the first of many. Reportedly, construction of the power station is set to commence in 2012 with final negotiations set to be completed by the end of 2011.

A subsidiary of UK-registered company, Jordan Energy and Mining Ltd, KIO is not far behind Eesti Energia and has recently signed an agreement to extract and process oil shale from the Al Lajjun, Karak region. The company expects to produce 15,000bpd from 2016 thus contributing around 15% of the oil that Jordan requires. In a statement, Munther Akroush, KIO’s Jordan office director said, “KIO will employ leading edge technology and specialist expertise to unlock the potential of Jordan’s oil shale reserves, the fourth largest in the world. This deal will increase Jordan’s energy self-sufficiency and, ultimately, has the potential to transform the Kingdom from being an importer to an exporter of oil and energy.”

Meanwhile, Shell signed an exploration agreement with the Jordanian government in 2009 and is understood to have drilled over 100 wells in a comprehensive exploration programme. Petrobas is reportedly assessing oil shale possibilities in Jordan and in October 2011, media announced that Jordan was set to invest around US$3bn in shale oil.

Frankly, even with environmental issues and challenges to overcome for major shale oil production in Jordan, it would seem to be a matter of when rather than if the kingdom can become energy self-sufficient and perhaps even an exporter. With the situation in Egypt only likely to get worse before it gets better, Jordan may well accelerate its shale oil plans and be able to cut its natural gas umbilical cord from Egypt within a matter of a few short years.

Sichuan Shale Gas Reserves (Boston Globe)

SHANGHAI—China is reporting discoveries of major shale gas reserves in its western Sichuan region, a development that could drastically boost its domestic supplies of natural gas and temper demand for imports.

State-owned China National Petroleum Corp. has found shale gas reserves in at least 20 locations, with each able to produce over 10,000 cubic meters of gas per day, a company official confirmed Thursday.

The official, who refused to allow his name to be cited because he said he is not a company spokesman, did not know what the future plans were for developing the reserves.

Technologies that make it possible to free oil and gas from shale formations deep underground at less expense than in the past are helping relieve energy scarcity.

But they are also generating concerns over the potential environmental costs of such extraction processes, which involve blasting chemical-laced water and sand deep into the ground -- a process known as hydraulic fracturing, or "fracking." Critics fear the drilling liquids, which can contain carcinogens, could contaminate water supplies, either below ground, by spills, or in disposed wastewater.

CNPC also reported in an online newsletter of the China Petroleum and Chemical Industry Federation, an industry group, that it had obtained good initial results in production from two exploratory shale gas wells.

The wells, are part of an effort to gauge the extent of suspected shale gas reserves in Sichuan that, if commercially feasible, could relieve pressure for increased imports to meet soaring energy demand.

The CNPC official did not say if the shale gas it succeeded in tapping was found just in blocks being developed by the company alone or also in blocks being explored along with Royal Dutch Shell PLC.

"If Shell has succeeded in producing gas from the pilot wells drilled in the Fushun-Yongchuan block, that's a good sign in terms of the company's ability to overcome the technical and geological challenges of extraction," said Thomas Grieder, Asia-Pacific energy analyst at IHS World Markets Energy in Geneva.

China's economic planning agency, the National Development and Reform Commission, initially reported progress on shale gas drilling in July.

China has awarded exploration rights for shale gas in the Sichuan Basin as part of efforts to launch use of the clean-burning fuel.

A CNPC technical report on its exploratory drilling for shale gas noted the need to comply with numerous environmental regulations and outlined various strategies for ensuring enough water supplies to conduct fracking.

It noted the difficulties of exploiting shale gas in what are mostly heavily populated areas.

China has so far not launched commercial shale gas operations but is partnering with Shell and other foreign companies seeking to improve its own technology. Chinese energy companies meanwhile have been investing in overseas reserves as part of their overall push to ensure access to crucial energy resources.

The US Energy Information Administration has estimated that China has about 36 trillion cubic meters (1,300 trillion cubic feet) of recoverable shale gas, the biggest known reserves. The U.S. has about 23.4 trillion cubic meters (827 trillion cubic feet)

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Researchers Fu Ting in Shanghai and Zhao Liang in Beijing contributed.

Mancha de Petróleo en Frade - (by John Lyons)

SAO PAULO—Un derrame de petróleo en un pozo de aguas profundas de Chevron Corp. frente a la costa de Rio de Janeiro este mes ha provocado la furia local e investigaciones de la compañía estadounidense. También se ha convertido en un incomodo recordatorio de que el esfuerzo de Brasil por conseguir la prosperidad a través del petróleo puede ser más costoso —y más complicado— de lo que muchos esperaban.

El escape a comienzos de noviembre en el yacimiento petrolífero de Frade, fue detenido tras la fuga de 2.400 barriles de crudo al mar, una fracción de los aproximadamente 4,9 millones de barriles derramados en el Golfo de México el año pasado cuando estalló la plataforma Deepwater Horizon en un pozo de BP PLC. En el caso de Brasil, no es probable que la mancha de petróleo llegue a las playas, dicen funcionarios locales, y ésta ya se está disipando de la superficie oceánica.

Enlarge Image

European Pressphoto Agency

Pero las consecuencias para Chevron no se están moderando. Las autoridades brasileñas suspendieron todas las operaciones de Chevron en Brasil esta semana, y organismos locales están pugnando por cobrar multas. La cifra ronda los US$80 millones por el momento pero podría aumentar. La Policía Federal de Brasil considera el derrame una posible escena de delito, y el ministro de Medio Ambiente de Rio de Janeiro, Carlos Minc, ha insinuado que Chevron podría ser expulsada de Brasil.

La compañía dijo el viernes que considera la suspensión de sus actividades de perforación en Brasil un "juicio prematuro" y dijo que mantendrá su programa de inversión de US$3.000 millones en el país.

Chevron planea defenderse demostrando que usó todos los recursos posibles para detener el derrame en cuatro días, dijo Ali Moshiri, presidente de Exploración y Producción de Chevron en África y América Latina.

"Confiamos con seguir trabajando estrechamente con la Agencia Nacional del Petróleo y el Ministerio de Minas y Energía para resolver toda preocupación", dijo. La compañía ya ha recibido "firme apoyo" de autoridades del estado de Rio de Janeiro para ayudar a resolver el problema, dijo Moshiri.

El director de operaciones de Chevron en Brasil, George Buck, compareció en una audiencia legislativa esta semana para recalcar el deseo de la compañía de permanecer en Brasil. Por medio de un intérprete, Buck ofreció a los legisladores "sinceras disculpas al pueblo brasileño y al gobierno brasileño".

El regulador petrolero de Brasil ha acusado a Chevron de negligencia y de no brindar información acerca del derrame a las autoridades. Chevron debe cesar el trabajo en Brasil hasta que se complete una investigación. En su testimonio, Buck dijo que Chevron actuó con rapidez y transparencia. Chevron, que opera el yacimiento de US$3.000 millones junto con los socios minoritarios Petróleo Brasileiro SA, o Petrobras, y Frade Japão Petróleo, dice que el aumento marcado en la presión del yacimiento causó el derrame.

El derrame de Chevron está creando inquietud aquí como la primera señal del lado oscuro del descubrimiento por Brasil en 2006 de las mayores reservas marítimas del hemisferio en décadas. Ha reorientado la atención brasileña a la explotación marítima de crudo.

Hasta ahora, el único debate público sobre el plan de Brasil de convertirse en uno de los mayores productores petroleros en décadas se ha centrado en cómo gastar las ganancias inesperadas por la serie de grandes hallazgos frente a las costas de de Rio.

El mayor descubrimiento, el yacimiento Lula, al sur del de Frade, contiene unos 6.500 millones de barriles de crudo. El yacimiento fue bautizado con el nombre del ex presidente Luiz Inácio Lula da Silva, quien completó su mandato en enero y calificó la riqueza petrolera de Brasil de una oportunidad para erradicar la pobreza, mejorar la educación y financiar sectores generadores de empleos.

"El problema es que el proceso ha sido completamente politizado, al decir que va a resolver todos los problemas sociales de Brasil. La verdad es que sacar petróleo de las profundidades no será tan barato o tan fácil como ha hecho creer el gobierno", dijo Adriano Pires, quien dirige el Centro Brasileño de Infraestructura, una firma de consultoría de energía.

El crudo es el núcleo de un esfuerzo amplio para impulsar el crecimiento a través del desarrollo de vastos recursos naturales. La controversia por los costos ambientales y otros, podría crecer a medida que estos planes se hagan realidad. Este mes, el Congreso brasileño está debatiendo un plan para diluir los códigos ambientales para los negocios agroindustriales brasileños. Mientras tanto, en la amazonía, grupos indígenas protestan los planes de construir decenas de plantas hidroeléctricas en sus ríos.

Ciertamente, Brasil no es ajeno a accidentes petroleros. En 2001, la que entonces era la mayor plataforma petrolera del mundo se hundió frente a las costas de Río, coronando una mala racha para la petrolera estatal Petrobras que incluyó el derrame de 1,29 millones de litros en una de las bahías de Río y el doble de esa cantidad en un río en el sur del país, en accidentes sucesivos.

Pero los pozos de aguas profundas de Brasil desde 2006 representan un nuevo nivel de complejidad. La mayoría del petróleo recientemente descubierto está a varios kilómetros de profundidad bajo el lecho marino, piedra y una gruesa capa movediza de sal que representa una frontera relativamente nueva en la exploración oceánica, por cuanto rara vez se han hecho perforaciones a través de esa capa en la industria.

En el momento del derrame del yacimiento de Frade, Chevron buscaba petróleo a una profundidad de 1.160 metros, menos hondo que el nivel llamado subsalino. Chevron integra un pequeño grupo de compañías con licencias para buscar petróleo subsalino en Brasil y había pedido permiso para buscar petróleo en niveles subsalinos debajo del yacimiento de Frade.

Diana Kinch contribuyó a este artículo.

Campo de Frade - Vazamento

A mancha de óleo resultante do vazamento ocorrido no Campo de Frade, na Bacia de Campos, litoral norte fluminense, continua diminuindo e se afastando do litoral. A informação foi dada pelos órgãos federais que compõem o grupo de acompanhamento do acidente, com base na observação feita no sobrevoo realizado ontem (24) por um helicóptero da Marinha, com técnicos da Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP).

 

Segundo nota divulgada hoje (25) pelo grupo, com base na observação visual, calcula-se que a mancha esteja com 3,8 quilômetros (km) de extensão e cerca de 1 quilômetro quadrado (km²) de área. No dia 21, a mancha era de cerca de 2 km².

 

Ainda é possível, no entanto, notar o afloramento de óleo na superfície. Técnicos que acompanham o caso alertam que outras manchas podem aflorar, sem que isso represente, necessariamente, novo vazamento. Isso decorre do fato de o vazamento ter ocorrido a grande profundidade, o que faz o óleo levar tempo considerável para chegar do fundo do mar até a superfície, explicam os técnicos.

Segundo o Instituto Brasileiro do Meio Ambiente e Recursos Naturais Renováveis (Ibama), um dos órgãos federais que compõem o grupo de acompanhamento, não foi recebida, até agora, nenhuma comunicação sobre problemas com a fauna causados pelo óleo.

 

A Marinha do Brasil coletou amostras do óleo proveniente do vazamento para análise, com o propósito de identificar sua composição química.

 

O grupo de acompanhamento, formado pela ANP, Ibama e Marinha, continua monitorando as medidas que vem sendo tomadas pela empresa petroleira Chevron Brasil para conter o vazamento de óleo no poço que explora no Campo de Frade, e amenizar as consequências do incidente.

Swedish and Chinese Investment in Brazil

Brazil is cashing in on its natural gas resources with new international deals that secure both early development of existing finds and new investors for the industry.

Swedish group Skanska this week announced a $490 million engineering, procurement and construction contract to build a new 550 megawatt natural gas thermal power plant in Rio de Janeiro. It is Skanska's biggest contract in Latin America.

A larger deal finalized Friday will see Chinese energy giant Sinopec paying $3.54 billion for Portuguese company Galp's 30 percent stake in a deep-sea asset in Brazil's Santos Basin in the South Atlantic, about 190 miles southeast of Sao Paulo.

The Skanska contract with Brazilian energy group Petrobras aims to push forward a gas-powered thermal power generation project in Seropedica at Baixada Fluminense, about 45 miles north of Rio de Janeiro.

Skanska, the single contractor of the project, will do the basic design, detailed engineering and construction of the facilities.

The contract includes the procurement of equipment and material and Skanska will assist with the start-up and operation of the plant by the end of 2014. At its peak the plant will have about 1,500 people on the job.

Skanska has been building its business on the continent, focusing on construction, operations and services for the international oil and gas and energy industry. Last year it had about 10,000 employees in the region, one-fifth of an estimated 52,000 Skanska workers worldwide. The company has headquarters in Stockholm, Sweden.

The other energy deal announced Friday gives Galp cash needed to continue expanding operations in Brazil's energy sector, where the sheer size of the required investment and project scale has kept many players out of the picture. Brazil's deep-water reserves require special skills and equipment not used elsewhere and drilling to great depths under the sea bed.

Sinopec's wholly owned unit, Sinopec International Exploration and Production Corp., will take new shares to be issued by Galp and assume shareholder loans, Sinopec said in a statement.

The immediate investment and future capital expenditure could exceed $5 billion, it said.

Sinopec expect to receive 21,300 barrels of oil equivalent per day by 2015, the production set to reach 112,500 boe per day by 2024.

The Sinopec deal means a major entrance for China in Brazil. Last year Sinopec paid Spanish energy group Repsol $7 billion for a 40 percent stake in its Brazilian operations.

China this year has spent more than $37 billion on buying foreign assets, still less than $54 billion it lavished on acquisitions in 2010 but with seven weeks to go before the end of the year

Interesting article about Oil Prices (by Alex Planes)

As the world urbanizes, demand for oil could outstrip many nations' abilities to get it out of the ground. Most new discoveries have been made in difficult territory, where the costs of extraction dwarf inexpensive Middle Eastern crude. Consumers may have to get used to high prices at the pump, with or without the threat of conflict between two of the world's largest producers. There's risk for some, but great opportunity for many, so read on to discover what's happening and who's poised to strike a gusher as oil prices continue to rise.

Hanging in the balance
Saudi Arabia is the world's most prolific oil-producing state, pumping 10.5 million barrels out of the sand every day last year. That figure has been stable for several years, but the Saudi people have actually been using more oil themselves, leading to stagnant to declining production surpluses.

Source: U.S. Energy Information Administration and author's calculations.

These are five of the world's six largest oil producing countries -- Russia is the other, holding steady with about 7 million barrels per day in surplus -- but none of the largest net exporters have substantially improved their balance in the past five years. New and expanded fields in Canada, the United States, Brazil, and other Latin American nations can inject more black gold into the world's veins, but it's unlikely that any can supplant the Saudis in terms of total output. If Saudi output were to decline, it could have dangerous consequences for global oil supplies. Even if Saudi output remains at the same level, it could be a big problem down the road as oil demand keeps increasing.

Fields of black gold
The crown jewel of Saudi oil production is the Ghawar field. The Saudi kingdom closely guards information on Ghawar, but many estimates place the super field's production in the range of 5 million barrels per day, roughly half the country's total output. Ghawar alone produces about as much oil as the nations of India, Oman, Colombia, Argentina, Malaysia, Egypt, and Australia together. It's also been at the epicenter of the peak oil debate for years, as research has uncovered increasing difficulty in getting oil out of Ghawar. Other Saudi fields have also been facing the same issues.

This is important because worldwide oil use has been growing steadily over the past 30 years without a commensurate increase in major new oil field discoveries. The Bakken shale formation, which became an exciting play because of new oil recovery technologies, only produces a tenth as much oil as Ghawar, and does so with greater difficulty. The Canadian oil sands produce about a fifth as much oil as Ghawar.

The harder it comes, the higher it costs
A major problem with most new oil fields is that extraction costs are much higher than they are in fields like Ghawar. Even cheap, easily accessible oil in other places is quite a bit more expensive to get out of the ground than Saudi oil. It's good to have a monopoly, as long as you can keep it running.

Source: News reports and government agency estimations.

The more the world relies on unconventional oil extraction, the less likely it is to ever see cheap oil again. The last substantial drop in prices came when everything else was crashing in 2008. Demand retreated in the midst of economic carnage, but it's a lot easier to manage reduced need than it is to cope with a need that simply can't be met.

Rise of the West
Cheap, easy oil is gone, but demand isn't going to go away. Alternative energy could become increasingly important, but it hasn't reached the point of fueling our transport system yet. Promising new oil fields are the best bet for the medium term and could offer substantial gains as production ramps up while the price of oil continues to appreciate. A number of major new oil projects (that we can invest in, anyway) have been in the Western Hemisphere, and many offer the promise of greater expansion. The Bakken shale area, for example, is hitting a wall not because of extraction difficulties, but because the transportation infrastructure isn't big enough.

Offshore discoveries are a bonanza for Brazil's Petroleo Brasiliero (NYSE: PBR  ) , and for Seadrill (NYSE: SDRL  ) , which is constructing several Brazilian deepwater rigs. ATP Oil and Gas (Nasdaq: ATPG  ) also has numerous offshore operations, though the vast majority are in the Gulf of Mexico. Despite its solid presence, much of ATP's reserves remain undeveloped, so there's still opportunity for growth beyond the expectation of higher oil prices.

Canada's Athabasca oil sands have seen heavy development investment from Suncor Energy (NYSE: SU  ) , and Penn West Petroleum (NYSE: PWE  ) has fields in the Peace River sands. As a master limited partnership, Penn West offers higher yields than most and could be a good play for dividend-hungry energy investors. U.S. petroleum producers are varied, but one lesser-known company with the potential to perform is Samson Oil and Gas(AMEX: SSN  ) , which has two Bakken-area holdings it has yet to fully develop. Another option might be SandRidge Energy (NYSE: SD  ) , which operates in "easier" areas like Texas and the Midwest, and has been investing heavily in the infrastructure needed to ramp up its oil production.

If you'd like the inside scoop on some other excellent oil companies, check out The Motley Fool's analysis of three poised to profit from $100 oil. Find out more about them in this free special report before the rest of the world catches on.

Belo Monte (ENS)

BRASILIA, Brazil, October 19, 2011 (ENS) - A federal judge in Brazil has ruled that the environmental licensing of the Belo Monte hydroelectric dam on the Xingu River in the Amazon is illegal due to the lack of consultation with affected indigenous peoples.

In Monday's court hearing, Federal Regional Appeals Court Judge Selene Maria de Almeida rejected arguments by Brazilian government lawyers that because the Belo Monte dam infrastructure and reservoirs would not be physically located on indigenous lands, there was no need for consultations with indigenous peoples.

Artist's rendition of the Belo Monte dam (Image from promotional video created by Electrobras)

Citing evidence from official sources and independent researchers, the judge concluded that the diversion of 80 percent of the Xingu River into artificial channels and three reservoirs would have devastating impacts downriver for the Arara, Juruna and Xikrin Kayapo indigenous peoples. There would be inevitable losses to the tribes' ability to catch fish, raise crops, and navigate freely, she said.
The vote is the first step in a federal circuit court decision in a lawsuit filed in 2006 by the Federal Public Prosecutors' Office that could ultimately bring the case before Brazil's Supreme Court. If Judge Almeida's decision is upheld by the high court, the Belo Monte dam project will be suspended immediately.
If it is ever built, the 11,000-megawatt dam in the state of Para would be the third largest in the world after China's Three Gorges dam and the Itaipu dam on the Brazil-Paraguay border.
In her decision, Judge Almeida agreed with public prosecutors that the 2005 legislative decree authorizing construction of the Belo Monte dam is illegal because a consultation process with threatened indigenous communities - guaranteed under Article 231 of the Brazilian Constitution - was not first carried out by Congress.

Judge Selene Maria de Almeida (Photo courtesy Dicas de Brasilia)

Judge Almeida ruled that Brazil's Congress has a special responsibility to weigh the benefits of a development project such as Belo Monte against its negative consequences for indigenous peoples.
"The initial decision by Judge Almeida was a good start," said Federal Prosecutor Felicio Pontes, co-author of the lawsuit. "She recognized that the licensing process of Belo Monte is invalid and that indigenous communities were not effectively consulted, despite the fact the project will have devastating impacts on their lands and livelihoods. Now it is important the judgment be reinitiated as quickly as possible."
In her ruling, Judge Almeida cites the need for Brazil to comply with its commitment to the International Labour Organisation's Convention 169, a treaty that requires free, prior and informed consent among indigenous peoples regarding projects that affect their territories and livelihoods.
Judge Almeida concluded that the Brazilian Congress should have based its authorization of the Belo Monte dam on the conclusions of the project's environmental impact assessment, including anthropological studies on its consequences for indigenous peoples.
Following Judge Almeida's vote, another judge, Judge Sebastiao Fagundes de Deus, interrupted the court hearing, requesting more time to examine the lawsuit's documentation.

Sheyla Juruna (Photo courtesyAmazon Watch)

Critics of the dam believe the request by Judge Fagundes de Deus, a conservative who previously worked as a lawyer with the state-run energy company Eletronorte, may be seeking to transform the Belo Monte dam project into a done deal.
It is likely that the final judicial vote on this lawsuit will be taken within weeks.
"I see this as a partial victory," said Sheyla Juruna, a leader of one of the indigenous communities threatened by the Belo Monte dam. "Now more than ever we need to pressure the government."
"What I fear most," said Juruna, who is touring the United States pleading the cause of her people, "is that the next judgment will allow the government to avoid compliance with its highest laws that guarantee us our right to prior and informed consent. The final decision of this lawsuit will show to the Brazilian and international public whether the Brazilian government truly respects indigenous rights or not."

Red dot marks the location of the Belo Monte dam siteon the Xingu River (Map courtesy Wikipedia)

The Belo Monte dam has reached this stage after a series of contentious stops and starts. Plans for the dam began in 1975 but were halted by controversy; they were later revitalized in the late 1990s.
The Norte Energia consortium won the rights to build and operate Belo Monte in an auction held in April 2010.
The consortium is controlled by the state-owned power company Eletrobras, which directly (15%) and through its subsidiaries Eletronorte (19.98%) and CHESF (15%) controls a 49.98% stake in the consortium. In July 2010, Eletrobras listed 18 partners in the consortium.
The dam complex is expected to cost upwards of US$16 billion and the transmission lines another $2.5 billion, funded largely by the Brazilian Development Bank.
On August 26, 2010, a contract was signed with Norte Energia to construct the dam once the Brazilian Institute of Environment and Renewable Natural Resources, IBAMA, issued an installation license. Under pressure to grant a full installation license, IBAMA President Abelardo Bayma Azevedo resigned in January 2011. A partial license was granted days later on January 26, 2011.

One of many public protests against the Belo Monte hydroelectric dam, August 19, 2011 (Photo courtesy Survival International)

On February 25, the Federal Public Prosecutor filed its 11th lawsuit against the dam, suspending IBAMA's partial installation license, on the grounds that the Brazilian Constitution does not allow for the granting of partial project licenses. The prosecutor also argued that the 40 social and environmental conditions tied to IBAMA's provisional license of February 2010 had yet to be fulfilled, a prerequisite to the granting of a full installation license.
On March 3, that decision was overturned by a higher court, which allowed preliminary construction to begin.
A license to construct the dam was issued on June 1, 2011 but construction was again blocked by a federal judge on September 27 when Judge Carlos Castro Martins ruled in favor of fisheries groups and placed limits on dam construction.
Judge Martins' decision bars the Norte Energia consortium from "building a port, using explosives, installing dikes, building canals and any other infrastructure work that would interfere with the natural flow of the Xingu River, thereby affecting local fish stocks."
Also on September 27, the mayor's office of Altamira, a former supporter of the dam, requested that the national government headed by President Dilma Rousseff suspend the project until her government can meet its guarantee to mitigate the social and environmental impacts.
In addition to the dam's impact on fisherfolk's livelihoods, Judge Martins cited the harm the dam could cause to the region's indigenous peoples, for whom local fish are a staple food.
According to the nonprofit Survival International, the Kayapo tribe has warned that if the dam is built, the Xingu could become a "river of blood."

Brasil - Industria Naval y Petróleo (por Mario Osava)

BRASIL: Petróleo submarino recupera industria naval

Por Mario Osava

La perspectiva de duplicar la producción actual de 2,1 millones de barriles diarios en el correr de esta década, cuando comiencen a explotarse los yacimientos de la llamada capa "presal" del subsuelo oceánico, sirvió de fundamental incentivo para el crecimiento de la actividad de puertos y astilleros.

Brasil tenía en los años 70 "la segunda mayor industria naval del mundo", pero sufrió luego una merma importante que solo logró revertir en parte en la última década, indicó Sergio Leal, secretario ejecutivo del Sindicato Nacional de la Industria de Construcción Naval (Sinaval).

Los 56.368 empleos directos en el sector registrados en junio superan con creces el mejor nivel del pasado. Los datos no incluyen cerca de 28.000 trabajadores de la industria náutica de pequeñas embarcaciones para esparcimiento.

Pero los observadores hacen hincapié en que los empleos indirectos son muy numerosos, ya que la cadena productiva es muy extensa. Una plataforma petrolera para producción en el océano se compone de miles de rubros y lleva más de un año solo su construcción.

En la carpeta de proyectos de plataformas "ya volvimos al segundo lugar" en el mundo, celebró Leal en el Congreso Internacional Presal Brasil, que reunió a empresarios, autoridades y técnicos del lunes 24 al miércoles 26 en Rio de Janeiro.

El hecho de tener la mayor parte de sus reservas en aguas oceánicas profundas encarece la exploración y producción de petróleo y gas natural en Brasil, porque exige una amplia y costosa infraestructura, además de avances tecnológicos como los que le dieron el liderazgo internacional a la firma estatal Petrobrás.

Con el hallazgo de un inmenso yacimiento en la capa presal, sus reservas de hidrocarburos pueden quintuplicarse. Este país, que hasta ahora luchaba por asegurar su autosuficiencia, podrá convertirse entonces en exportador neto.

Pero esa riqueza está a casi 7.000 metros de profundidad y a más de 300 kilómetros de la costa mar adentro. El desafío de explotarla, con una política que favorece la producción nacional de los medios necesarios, impulsó la industria naval y su extensión denominada "offshore".

Esa política viene de antes. En 2003, el gobierno creó el Programa de Movilización de la Industria Nacional de Petróleo y Gas Natural, para fortalecer la cadena productiva del sector en territorio nacional.

El año siguiente la empresa Transpetro, subsidiaria de Petrobrás para el transporte, anunció el programa de expansión de su flota con 49 nuevos navíos petroleros, con un mínimo de 65 por ciento de componentes nacionales, índice elevado a 70 por ciento en la segunda fase iniciada en 2008, e inversiones totales por 4.600 millones de dólares.

El contenido local se impuso como regla general a partir de 2005 gracias a una resolución de la Agencia Nacional de Petróleo, el organismo regulador.

La industria naval brasileña, que estaba concentrada en Rio de Janeiro en el pasado, ganó nuevos polos.

El nordestito Puerto de Suape encabeza hoy el sector en toneladas de porte bruto (TPB), con un gran astillero instalado últimamente y que ya construye muchos navíos petroleros, aunque Rio de Janeiro ofrezca el doble de empleos en una producción más diversificada, explicó Leal.

En el extremo sur del país florece otro polo. Con dos astilleros operando y otros dos en construcción cerca de su principal puerto marítimo, el estado de Rio Grande do Sul tiene excelentes condiciones para aprovechar la oportunidad generada por el petróleo presal, según Vanderlan Vasconcelos, titular de la Superintendencia de Puertos e Hidrovías del distrito.

El estado ofrece una industria metalmecánica ya desarrollada, con 2.100 empresas, 167 del sector electrónico y 300 firmas geoceánicas, la mayoría servida por una hidrovía de 758 kilómetros que permite estrecha la conexión con el puerto Rio Grande y los astilleros, detalló.

Además, las lagunas y ríos locales pueden constituir una nueva red fluvial en el Mercosur (Mercado Común del Sur), con 1.530 kilómetros de extensión, contribuyendo a integrar las economías de Brasil, Argentina y Uruguay, que integran el bloque junto a Paraguay, acotó.

Otra ventaja del puerto de Rio Grande es la relativa proximidad con Sudáfrica y Asia, corroboró Wilen Manteli, presidente de la Asociación Brasileña de Terminales Portuarios, en contraposición a Suape, que está más en línea con Europa y Estados Unidos.

"El ciclo del presal durará 30 años como mínimo", estimó Aloisio Nóbrega, vicepresidente de la Agencia Gaucha de Desarrollo y Promoción de Inversiones. Por eso, una de las prioridades del gobierno de Rio Grande do Sul es la "industria oceánica", como él prefiere denominar a "offshore".

Esa industria no se limita a los astilleros, sino que integra una larga cadena que será beneficiada por el hecho de que este meridional estado cuenta con el segundo mayor parque industrial metalmecánico de Brasil, solo superado por São Paulo, arguyó. Añadió a ello la mejor calidad de vida en esta zona y un mercado de 11 millones de habitantes.

El campo de los hidrocarburos del presal oceánico, lejos de la costa sudeste de Brasil y extendiéndose por 800 kilómetros de largo y 200 de ancho, "necesita embarcaciones nuevas y mas eficientes", además de "instalaciones específicas" para atender sus actividades, aseguró Fernando Fialho, director general de la Agencia Nacional de Transportes Acuaviarios (Antaq).

A pesar de la multiplicación de puertos y astilleros, en Brasil aún urge un mayor esfuerzo y premura, porque los proyectos de infraestructura demandan mucho tiempo debido a la necesidad de sacar licencias ambientales y tener contratos e "ingeniería financiera" a largo plazo, alertó.

La capacitación masiva de mano de obra es otro desafío, acotó Fialho.

"El escenario futuro exige esfuerzos alternativos" y las hidrovías constituyen una prioridad de Antaq, porque llevan el desarrollo al interior del país y "la industria que sirve al presal no necesariamente tiene que estar en la costa", concluyó.(FIN/2011)

PETROLEO INTERNACIONAL (Agosto-12, 2009) Costa afuera BRASIL¿Qué pasará con el presal brasileño? Se estima que de cada tres pozos perforados, uno tiene reservas  Equipo editorial Petróleo Internacional, Agosto 2009  En días recientes, Petrobras divulgó un comunicado al mercado informando haber perforado 30 pozos en el área del presal, con un índice de éxito de 87%. En la Cuenca de Santos los éxitos hasta ahora son de 100%. Informaciones preliminares obtenidas por el gobierno en la ANP indican que Petrobras y las operadoras privadas han perforado en total 34 pozos en la capa del presal. De estos, según la fuente del gobierno, 31 pozos (cerca de 91%) mostraron la existencia de petróleo en condiciones viables de producción. La caída del índice de éxito de la perforación de pozos exploratorios en la región del pre-sal brasileño es una tendencia natural. A la larga debe llegar a 30%, el mismo promedio de la Cuenca de Campos, lo dicen tres geólogos y un consultor especialista en el pre-sal. “Hablar de un índice de éxitos de 100% con riesgo cero, es casi dar una licencia poética”, afirmó el exdirector de la Agencia Nacional do Petróleo (ANP), John Foreman. En días recientes, Petrobras divulgó un comunicado al mercado informando haber perforado 30 pozos en el área del pre-sal, con un índice de éxito del 87%. En la Cuenca de Santos los éxitos hasta ahora son del 100%. Informaciones preliminares obtenidas por el gobierno en la ANP indican que Petrobras y las operadoras privadas han perforado en total 34 pozos en la capa del pre-sal. De estos, según la fuente del gobierno, 31 pozos (cerca de 91%) mostraron la existencia de petróleo en condiciones viables de producción. La nota fue divulgada en respuesta a un reportaje del periódico Valor Económico indicando que 32% de los pozos en el pre-sal tuvieron resultados no satisfactorios. Con base en datos de la ANP, el periódico presentó una lista de 28 pozos, de los cuales 9 serían secos o subcomerciales. “La tendencia es que el índice de éxitos en el pre-sal baje. Sería excelente si terminara en 30%”, afirma el geólogo Guiseppe Baccocoli. Él recuerda que al realizar la primera perforación en un área para identificar reservas potenciales, el principal objetivo es donde hay los indicios más fuertes de petróleo, indicador por un levantamiento sísmico. “En las otras perforaciones, se busca delimitar el yacimiento. El trabajo se desplaza hacia los lados para probar áreas con menos certeza y es natural que disminuya la tasa de éxito”. Para el geólogo Marcio Mello de HRT Petroleum, las estructuras del pre-sal son gigantescas y merecen el calificativo de “billete premiado de lotería”, aunque no se mantenga el riesgo cero. “El índice de éxito que vamos a encontrar en el pre-sal – y que el tiempo lo demostrará – será el mismo que existe en la Cuenca de Campos, o sea que de cada tres pozos perforados, uno encuentra reservas. Es un nivel alto para un área que promete un volumen elevado”, destacó. En la Cuenca de Santos, que es la referencia para el pre-sal, 15 pozos perforados justifican la euforia del gobierno. Hasta la perforación del décimo quinto pozo, el segundo en el área del bloque CM-S-22, operado por la Exxon en sociedad con Petrobras, todos habían registrado presencia de petróleo o gas. En junio pasado, cuando la Exxon confirmó el primer pozo seco, el mercado comenzó a cuestionar el potencial de esa área, en la que ya se habían identificado hasta 12.000 millones de barriles (entre Tupi e Iara), con un potencial todavía mayor. El propio ministro de Minas y Energía de Brasil, Edison Lobão, quien dijo que sólo volverá a pronunciarse al respecto después de que la ANP concluya el nuevo análisis de los pozos, llegó a referirse al área del pre-sal en toda su extensión geológica (800 km de largo por 200 km de ancho) con potencial de hasta 150 mil millones de barriles. “Se ha dicho mucho sobre el índice de éxito en el pre-sal. Inicialmente hablaban de una gran laguna de petróleo que se extendía por toda esa área con un volumen de 160 mil km2. Después, que esa formación rocosa tendría algunas acumulaciones a lo largo de toda su extensión. Hoy, por los estudios disponibles, se sabe que las mayores acumulaciones del pre-sal están en el Polo de Tupi. Poco a poco estamos aprendiendo más sobre esta nueva frontera geológica”, comentó un ejecutivo del sector, que pidió no ser identificado. El promedio mundial de éxito de perforación es hoy de 10% a 12%, con picos máximos de 25 e 30%, según especialistas del sector. En tanto que para áreas nuevas, nunca antes exploradas, como es el caso del pre-sal brasileño, sería razonable un indicador de 5%. Según el director ejecutivo de DCT Energia, Ericson de Paula, la actividad de exploración se realiza por aproximación y error. “Cuanto más perfora una empresa operadora, más aumenta la precisión de la exploración y la perforación de pozos secos termina siendo una consecuencia. La perforación de pozos secos no es necesariamente mala. Es parte del proceso”. Este especialista agrega que como no hay antecedentes históricos para el área del pre-sal, no es posible calcular cuál sería un índice razonable de éxito para el área. El que las empresas perforen pozos que resultan secos durante su evaluación no va a disminuir el apetito de las empresas operadoras privadas por el pre-sal, “porque no existen muchas nuevas fronteras que explorar y, entre las disponibles, el Brasil es el mercado con las reglas más estables.