Brazil Talks With UN on Drilling for Oil Outside Boundary

Brazil is in talks with the United Nations to get recognition for so-called pre-salt oil deposits that stretch outside the country’s continental shelf.

A “small” portion of the resources, buried under a layer of salt in the Atlantic Ocean, are located outside the country’s maritime borders, Marco Antonio Almeida, the Energy Ministry’s oil and natural gas secretary, said today in Rio de Janeiro.

“The UN has already approved a large section of the continental platform for Brazil to include. There are three areas still under discussion,” Almeida told reporters in Rio de Janeiro. “These three things need to be resolved for a definitive solution.”

Brazil has found more oil than any other country over the past decade with the biggest discoveries located in the pre-salt area. The country plans to more than double crude output by 2020 as state-controlled Petroleo Brasleiro (PETR4) SA and other producers start pumping oil from miles below the seabed.

The country also has “big” potential for oil discoveries near the equator in northern Brazil where the government plans to auction exploration areas. The energy ministry is waiting for President Dilma Rousseff to authorize the bidding round, known as Round 11, for the area and it may occur as early as this year, Almeida said.

To contact the reporter on this story: Juan Pablo Spinetto in Rio de Janeiro at jspinetto@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

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