

Currently released so far... 6239 / 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
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
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 Ciudad Juarez
Consulate Chennai
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 Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
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 Mbabane
Embassy Maputo
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
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
Consulate Tijuana
USUN New York
USEU Brussels
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Browse by tag
ASEC
AU
AORC
AF
AM
AFIN
AEMR
AR
ASIG
AMGT
AG
APER
AL
ABLD
ASUP
AA
ASECKFRDCVISKIRFPHUMSMIGEG
AE
AMED
AS
AGMT
APECO
AO
AFFAIRS
AJ
ACOA
AX
AROC
ATFN
ASEAN
AFGHANISTAN
ADCO
AFU
AER
ALOW
AODE
ABUD
ATRN
AID
AC
AVERY
APCS
CASC
CJAN
CVIS
CS
COUNTER
CD
CU
CI
CO
CG
CE
CA
CMGT
CH
CWC
CBW
CKGR
CR
CN
CPAS
CONS
CDG
CLINTON
CT
CJUS
CY
CV
COUNTERTERRORISM
CIA
CACM
CDB
CAN
COE
CM
COUNTRY
CLEARANCE
CACS
CF
CONDOLEEZZA
CARSON
CL
CIS
CODEL
CTM
CB
COM
ECON
EFIN
ETRD
EAIR
EAID
ET
EFIS
ENRG
EPET
ETTC
ER
EG
EINV
EAGR
ELAB
EUN
EWWT
ENGR
EMIN
ECIN
ENIV
ES
EC
ECPS
EIND
EI
EU
ENVI
ETRDEINVECINPGOVCS
ELTN
EZ
EINT
ELN
EUR
EUNCH
EN
EINVECONSENVCSJA
ELECTIONS
EINVEFIN
ENNP
ECUN
EXTERNAL
EK
EFINECONCS
ECINECONCS
ECIP
EINDETRD
EUC
EREL
ENVR
ECA
ENERG
ENGY
ETRO
EFTA
ECONCS
ECONOMICS
ECONEFIN
EINVETC
EINN
ESA
ETC
ETRDEINVTINTCS
ESENV
ETRDECONWTOCS
IR
IZ
IWC
IC
ILC
IO
IAEA
IN
IS
IT
ICRC
INTELSAT
ILO
IBRD
IMF
ICAO
IMO
ITALY
ITALIAN
IRAQI
ITRA
ISRAELI
ICJ
IACI
INTERPOL
ID
IV
ICTY
IQ
IPR
INRB
ITPHUM
IIP
IL
IA
INR
ITPGOV
IZPREL
IRC
INRA
INRO
IRAJ
IEFIN
IF
KE
KCRM
KDRG
KIPR
KCOR
KSCA
KBIO
KDEM
KMCA
KMPI
KNNP
KJUS
KOMC
KGHG
KSUM
KSTC
KIRF
KTIP
KWMN
KZ
KG
KTFN
KHLS
KPAO
KFRD
KTIA
KOLY
KCFE
KISL
KFLU
KPKO
KWBG
KTBT
KTDB
KOCI
KUNR
KAWK
KICC
KPAL
KSTH
KN
KS
KGIC
KNPP
KWAC
KMDR
KAWC
KBCT
KIDE
KFLO
KWMNCS
KSEP
KU
KNEI
KVPR
KACT
KRAD
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KCIP
KSAF
KV
KSPR
KPRP
KFSC
KCRS
KR
KRFD
KX
KO
KPWR
KMIG
KSEC
KIFR
KDEMAF
KFIN
KGCC
KPIN
KHIV
KPLS
KIRC
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KGIT
KBTS
KPRV
KBTR
KERG
KWMM
KRVC
KNSD
KVIR
KNUP
KTER
KDDG
KHSA
KMRS
KHDP
KTLA
KPAK
KNAR
KREL
KPAI
KTEX
KCOM
KNNPMNUC
KPOA
KLIG
KHUM
KDEV
KNUC
KCFC
KREC
KOMS
KWWMN
MASS
MP
MARR
MOPS
MNUC
MX
MO
MCAP
MY
ML
MU
MIL
MC
MTRE
MA
MD
MTCRE
MEPI
MAR
MRCRE
MR
MV
MPOS
MZ
MEPP
MOPPS
MAPP
MASC
MT
MERCOSUR
MK
MDC
MI
MAPS
MCC
MASSMNUC
MQADHAFI
MUCN
MTCR
MG
OVIP
OREP
OTRA
OSCE
OECD
OIIP
OEXC
OPCW
OPIC
OPDC
OPRC
ODIP
OVP
OSCI
OAS
OFDP
OTR
OSAC
OIC
OFFICIALS
OIE
PREL
PGOV
PHUM
PTER
PE
PINR
PINS
PARMS
PARM
PHSA
PA
PK
PBTS
PO
PREF
POL
PLN
POLITICS
PROP
PL
PM
PAO
PSI
PG
PEPR
POV
PALESTINIAN
PINT
PSOE
PU
POLITICAL
PARTIES
PBIO
PECON
PAK
POGOV
PINL
PKFK
PMIL
PY
PFOR
PHALANAGE
PARTY
PRAM
PMAR
PGOVLO
PUNE
PORG
PHUMPREL
PF
POLINT
PHUS
PGOC
PNR
PGGV
PNAT
PGOVE
PRGOV
PRL
PROV
PTERE
PGOF
PHUMBA
PINF
PEL
SNAR
SO
SENV
SU
SCUL
SOCI
SP
SC
SA
SMIG
SAN
SZ
SW
SN
SY
SR
SL
SEVN
SF
SYR
SI
SG
STEINBERG
SIPRS
SH
SNARCS
SOFA
SANC
SHUM
SK
ST
TERRORISM
TRGY
TZ
TX
TBIO
TSPA
TS
TSPL
TW
TU
TD
TIP
TURKEY
TP
TI
TC
TPHY
TH
TO
TK
TNGD
TINT
TRSY
TR
TFIN
TT
UG
UK
UP
UNGA
UNHRC
UZ
UN
UNAUS
USTR
UNSC
US
UNEP
UY
UNESCO
USUN
UNHCR
UAE
UNMIK
USEU
UV
UNO
UNDP
UNCHS
UNVIE
UNCHC
UE
UNDESCO
USAID
UNDC
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