Currently released so far... 3891 / 251,287
Articles
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Amsterdam
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Casablanca
Consulate Cape Town
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kigali
Embassy Khartoum
Embassy Kampala
Embassy Kabul
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lagos
Mission USNATO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Maputo
Embassy Manama
Embassy Managua
Embassy Madrid
Consulate Munich
Consulate Montreal
Consulate Monterrey
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate Shenyang
Consulate Shanghai
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
USUN New York
USEU Brussels
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Browse by tag
AF
ASEC
AE
AR
AG
AJ
AFIN
AU
AM
APER
ABUD
ATRN
AORC
AEMR
AMGT
ACOA
AEC
AO
AX
AMED
ADCO
AODE
AFFAIRS
AC
AS
AL
ASIG
ABLD
AA
AFU
ASUP
AROC
ATFN
AGMT
CJAN
CH
CU
CASC
CVIS
CMGT
CO
CI
CLINTON
CIA
CG
CF
CN
CS
CAN
COUNTER
CIS
CA
CBW
CM
CE
CONDOLEEZZA
COE
CR
CY
CD
CTM
COUNTRY
CLEARANCE
CPAS
CWC
CT
CKGR
CB
CACS
COM
CDG
CJUS
CARSON
COUNTERTERRORISM
CACM
CDB
CV
EU
EFIN
EG
ETTC
EINV
ENRG
EI
ECPS
EINT
ECON
EIND
ETRD
EPET
EUN
EZ
EMIN
ELAB
EAID
EAGR
ET
EC
EAIR
ENVR
ES
ECA
EWWT
ER
ELTN
EFIS
EN
EXTERNAL
ECIN
EINVETC
ENIV
EINN
ENGR
EUR
ESA
ENERG
ELECTIONS
ECUN
EINVEFIN
ECIP
EINDETRD
EUC
EREL
IR
IZ
IS
IT
INRB
IRAJ
IN
INRA
INRO
IO
IC
ID
IIP
IAEA
ITPHUM
IV
IPR
IWC
IQ
ICTY
ISRAELI
IRAQI
ICRC
ICAO
IMO
IF
ILC
IEFIN
INTELSAT
IL
IA
IBRD
IMF
ITALY
ITALIAN
INTERPOL
KE
KTFN
KDEM
KJUS
KNNP
KGHG
KZ
KIPR
KWBG
KIRF
KPAO
KDRG
KHLS
KCRM
KSCA
KPAL
KISL
KG
KACT
KN
KS
KGIC
KRAD
KU
KCOM
KBIO
KMCA
KCOR
KV
KHDP
KTIP
KVPR
KDEV
KWMN
KSPR
KTIA
KHIV
KPRP
KAWC
KOLY
KCIP
KCFE
KOCI
KMDR
KPKO
KTDB
KMRS
KFRD
KLIG
KBCT
KICC
KGIT
KSTC
KUNR
KPAK
KNEI
KSEP
KPOA
KFLU
KNUP
KNNPMNUC
KOMC
KAWK
KO
KTER
KSUM
KHUM
KRFD
KBTR
KDDG
KWWMN
KFLO
KSAF
KBTS
KPRV
KMPI
KNPP
KNAR
KWMM
KERG
KFIN
KTBT
KCRS
KRVC
KR
KPWR
KWAC
KMIG
KSEC
KIFR
KDEMAF
KGCC
KPIN
KNUC
KPLS
KIRC
MARR
MOPS
MU
MASS
MY
MNUC
MCAP
MA
MO
MTCRE
MG
MASC
MX
MCC
MZ
ML
MK
MTRE
MP
MIL
MDC
MTCR
MAR
MEPI
MRCRE
MI
MT
MR
MQADHAFI
MD
MAPS
MUCN
MPOS
MEPP
MOPPS
MAPP
PGOV
PREL
PINR
PO
PINS
PTER
PK
PHUM
PARM
PL
PE
PREF
PHSA
PBTS
PGOF
PROP
PARMS
PA
PM
PMIL
PTERE
POL
PF
PALESTINIAN
PY
PGGV
PNR
POV
PAK
PAO
PFOR
PHALANAGE
PARTY
PNAT
PROV
PEL
POLITICS
PEPR
PSI
PINT
PSOE
PU
POLITICAL
PARTIES
PBIO
PECON
POGOV
PINL
PKFK
SU
SA
SY
SP
SNAR
SENV
SCUL
SW
SOCI
SF
SO
SR
SG
SMIG
SL
SN
SHUM
SZ
SYR
ST
SANC
SC
SAN
SIPRS
SK
SH
SI
STEINBERG
UK
UNSC
UG
US
UZ
UP
UNO
UNMIK
UY
UN
UNGA
UE
UNESCO
UAE
UNEP
USTR
UNHCR
UNDP
UNHRC
USAID
UNCHS
UNAUS
USUN
USEU
UV
Browse by classification
Community resources
courage is contagious
Viewing cable 08RIODEJANEIRO91, BRAZIL'S CHIEF PETROLEUM REGULATOR INADVERTANTLY CONFIRMS RUMORS OF MEGA OIL FIELD IN SANTOS BASIN REF:
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08RIODEJANEIRO91.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
08RIODEJANEIRO91 | 2008-04-15 19:07 | 2010-12-13 07:07 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Consulate Rio De Janeiro |
VZCZCXRO8203
RR RUEHRG
DE RUEHRI #0091/01 1061916
ZNR UUUUU ZZH
R 151916Z APR 08
FM AMCONSUL RIO DE JANEIRO
TO RUEHC/SECSTATE WASHDC 4437
INFO RUEHBR/AMEMBASSY BRASILIA 0779
RUEHSO/AMCONSUL SAO PAULO 5143
RUEHRG/AMCONSUL RECIFE 3421
RUCPDOC/USDOC WASHDC
RHEBAAA/USDOE WASHDC
UNCLAS SECTION 01 OF 03 RIO DE JANEIRO 000091
SIPDIS
SIPDIS
SENSITIVE
STATE FOR WHA/BSC, WHA/EPSC AND GREG MANUEL
EB/ESC JAMES EIGHMIE
USDOC FOR 4332/ITA/MAC/WH/OLAC/JANDERSEN/ADRISCOLL/MWAR D
USDOE FOR CAROLYN GAY AND RHEA DAVIS
E.O. 12958: N/A TAGS: ENRG EPET EIND EINV BR
SUBJECT: BRAZIL'S CHIEF PETROLEUM REGULATOR INADVERTANTLY CONFIRMS RUMORS OF MEGA OIL FIELD IN SANTOS BASIN REF:
A) RIO DE JANEIRO 35,
B) 07 SAO PAULO 0953
Sensitive but unclassified, please protect accordingly.
¶1. (SBU) Summary. Brazil National Petroleum Agency (ANP) Director Haroldo Lima is under fire and, some speculate, may lose his job for confirming what petroleum industry insiders have believed for some time -- that, at a depth of around 4000 meters in the Santos Basin off the coast of Sao Paulo, Brazil potentially has a mega oil field estimated to contain between 30-40 billion barrels of oil. If these reserves are confirmed, Brazil could jump into the top 10 oil countries by reserves, surpassing nations such as Nigeria and Libya. Though the possibilities have generated a great deal of excitement, industry observers caution that the technological challenges involved are extensive and expensive to overcome, meaning that any developments will, at the very least, be slow in coming. In light of the potential gains, there are signs that GOB is looking for ways to maximize the government share of these historic finds and to allow Petrobras to position itself to be the leading developer in the new fields. End Summary.
Making News and Moving the Markets ----------------------------------
¶2. (U) Speaking as part of a seminar panel on April 14, ANP Director Haroldo Lima announced that Brazilian state oil company Petrobras is sitting on the world's biggest oil discovery in 30 years. ANP quickly released a statement distancing itself from Lima's remarks, saying that he had been speaking outside of his official capacity. Brazilian semi-publi c state oil company Petrobras declined to confirm the estimate, saying only that studies on the find are still underway. Still, shares of Petrobras closed up 6 percent on the day.
¶3. (U) According to Lima, Petrobras, which operates the BM-S-9 block ("Carioca"), has a significant stake in a massive sub-salt structure that could contain more than 33 billion barrels of oil equivalent and is estimated to be five times the size of the recently announced, large Tupi discovery (5-8 billion barrels)(ref B). He went on to comment that Carioca has the potential to be the third biggest active field in the world. Brazil's Securities and Exchange Commission harshly criticized Lima, saying that he should have known the effect his comments would have on the stock market. In the near-term, ANP and Lima will focus their energies on damage control but Lima could very well be fired over this slip-up within the next few days.
¶4. (U) Lima, 67, is an electrical engineer from the state of Bahia. B efore being named Director of ANP in 2005, Lima was a five-term federal deputy in the Brazilian Congress. He is a member of Communist Party of Brazil (PCdoB), which supports the Lula Administration. Though Lima did not come to ANP with a strong background in petroleum, industry generally gives a positive assessment of his performance as Director. Under Lima, ANP has held four bidding rounds for oil and natural gas exploration and production blocks. Lima understands that regular and transparent bidding rounds are fundamental to maintaining international investment in the petroleum and gas industry. In a recent interview in ISTOE Magazine, Lima called for the creation of a 100% state-owned company to receive all the oil extracted from Brazil and partners would receive monetary payments.
How Much Oil Are We Talking About? -----------------------------------
¶5. (SBU) For years, industry insiders have conjectured that there might be a lot more oil at deeper geological intervals t han those where Petrobras, Shell and Devon produce today in Brazil. Talk of "another Campos Basin below the Campos Basin" and large potential in Santos Basin has been circulating through the oil community for a while. In 2005, Petrobras began drilling the Parati well in the Santos Basin, the first well to reach hydrocarbon-bearing reservoirs below a 2 mile-thick layer of salt. The well was the most expensive ever in the country, but it was key as it confirmed that there was indeed oil below the salt that might be put into production. Since then, Petrobras drilled three other wells in the area (along with four others in different areas off of Brazil's coast) and all found relatively light oil (28-30 API) below the salt. The Tupi announcement in November 2007 was the crowning event of a long process.
¶6. (SBU) However, industry insiders never considered Tupi as the largest structure in the region. With the latest technology available, subsurface maps of what the area below the salt layer might look like have indicated that it is only the smaller of two relatively large "hills" under the salt. If oil bearing, the larger RIO DE JAN 00000091 002 OF 003 structure might hold a quantity of oil estimated to be between 30-40 billion barrels. Located to the south of Tupi, the larger structure has yet to be given a public name but is being referred to by the industry as "Sugarloaf."
¶7. (SBU) Petrobras tested one well in the Sugarloaf structure last year in the BM-S-9 block (Carioca) and is still drilling another. It operates the block in partnership with BG Group (30%) and Repsol (25%). In an official release, Petrobras stated that the second well has not yet reached the sub-salt level. In the absence of more conclusive data on the block's potential, Petrobras is remaining tight-lipped. Through its work in Brazil and in Mexico's deep-water reserves, Petrobras has developed expertise and a reputation as a leader in cutting edge deepwater drilling technology.
¶8. (SBU) While Petrobras is getting the majority of the press play right now, it should be noted that other companies are also well positioned should a discovery at Sugarloaf be confirmed. The BM-S-22 block, just south of Petrobras' Carioca block, is thought to be the apex of the structure and is operated by Exxon (40%) in partnership with Hess (40%) and Petrobras (20%). Galp, BG, and Shell also have minority stakes in neighboring blocks. Exxon Brazil President John Knapp told Mission Brazil officers that the industry as a whole is extremely excited about pre-salt opportunities in Brazil, but cautioned that the government and press euphoria does not sufficiently take into account the serious technological and financial challenges of drilling so deep. Knapp also expressed some concern that, in this euphoria, the GOB may be tempted to change its current concession model which industry views as fair, transparent, and effective in order to allow the GOB and Petrobras to take ma ximum advantage of the finds, possibly at the expense of the international oil community.
Next Steps for the Government of Brazil ---------------------------------------
¶9. (SBU) As previously reported (Ref A), the Government of Brazil withdrew 41 prime blocks in the Santos Basin from auction shortly after the Tupi announcement in November 2007. Pending a determination of how to best develop the Santos Basin pre-salt reserves and capture the most revenue, no further bidding will take place. This has international industry concerned since, in the absence of new exploration opportunities, they could be forced to leave Brazil. ANP has formed a task force and contracted international consulting firm Wood MacKenzie to study how other countries handle such contracts. ANP has also expressed interest in sending a delegation to the U.S. to study how the USG handles contracts in the Gulf of Mexico and in Alaska.
¶10. (SBU) While Petrobras CEO Sergio Gabrielli has made public comments t hat Brazil should look into amending its Petroleum Law, industry insiders and academic experts agree that the most likely outcome is for Brazil to maintain its current concessions arrangement and increase the government's take, or "special participation rate" (maybe to as high as 80 percent). There is likely not enough support within the Congress to support such a new Petroleum Law, and little confidence in Congress' ability to come up with a palatable new framework. The benefit of increasing the special participation rate is that it can be achieved by Presidential Decree.
¶11. (SBU) Petrobras would also likely oppose any change towards a production sharing or service contract regime. It appears as though Gabrielli's strategy is to stall the auction process for a few years so that Petrobras can be better positioned, financially, to bid competitively on the prime blocks. As it is, Petrobras is confronting serious resource constraints on Tupi, and getting Sugarloaf into product ion may be beyond its current capabilities. There is a worldwide shortage of geologists, engineers and equipment, and the depth of these discoveries (2000 plus meters of water and up to two miles of salt) would require the most advanced (and most expensive) drilling technology on the market. (Note: There are only a few drills capable of drilling at such depths. Per ref B, two of these have been reserved to begin work at Tupi in 2009. End Note.)
¶12. (SBU) Supported by key players within the Brazilian government, such as Presidential Chief of Staff and Chairman of Petrobras' Board of Directors Dilma Rousseff, Petrobras is shifting resources to develop Tupi as quickly as possible. The government views the new sub-salt discoveries as a good source of future political leverage, and is about to embark on a US$50 million publicity campaign to spread the news about Brazil's apparent new oil riches. If Dilma Rousseff indeed runs for the presidency in 20 10, it is possible that these oil and gas developments combined with the government's large-scale planned infrastructure projects could boost her profile as a candidate.
Comment -------
¶13. (SBU) The potential discovery of additional oil deposits in the Santos Basin is certainly good news for Brazil. Unfortunately, the bad news is that there is insufficient drilling equipment to bring these resources on line quickly and there remain significant technological hurdles to drilling in such extreme conditions. If the best estimates have the Tupi field producing no sooner than 2013 even with the full support of Petrobras and the rest of the GOB, developing "Sugarloaf" may indeed take some time. Undoubtedly, however, these discoveries have the potential to make Brazil a player in international energy markets and may have an impact on Venezuela's role for the region as well. The GOB's decisions on how to develop the area will have further impact on U.S. companies' ability to partici pate in these exciting new finds. End Comment. 12. (U) This message was cleared/coordinated with Embassy Brasilia.
MARTINEZ