Amapa Governor: Brazil's Petrobras is studying a logistics base for Amapa

Clecio Liu, the governor of the Amazonian State of Amapa told reporters that Brazil's Petrobras had authorized studies to build a logistics centre in the state. Last week, the state-run oil company began exploring a promising offshore area.

Luis explained that the company's Transpetro logistics subsidiary would do the studies. He added that the center will support Petrobras in the event of an important discovery.

Petrobras did not give any further details. Magda Chabriard, Petrobras' Chief Executive, had previously said that the oil company could begin production within seven years if a significant find is made.

Luis, speaking on the sidelines at the OTC Industry event in Rio de Janeiro, said that Petrobras was not only looking to Amapa as a potential site, but that the studies were a "victory".

A person who was present said that the governor held a meeting with around 20 companies, including representatives of SBM Offshore and Siemens. Also in attendance were representatives from Subsea 7 & Technip FMC who offer services to the oil industry. In a late-Wednesday interview, he said that firms had indicated they would look at setting up shop in Amapa.

Luis stated, "We are working hard to prepare our workforce, regularize the areas, guarantee incentives, and change legislation as necessary."

Concerns about the environment Last week, the Brazilian environmental agency Ibama approved the drilling of an exploratory well by Petrobras in Foz do Amazonas off the coast Oiapoque in Amapa. The drilling is expected to last for around five months.

Petrobras considers this area to be its most promising oil frontier. It shares geology with the nearby Guyana where ExxonMobil has developed huge fields. Amapa politicians and the federal Government have welcomed the license, while environmental groups are concerned about the possible impact on Amapa’s Indigenous population. They also worry that the license could lead to the deforestation of more of Amapa’s Amazon rainforest.

A SMALL TOWN MAY RECEIVE A CENTRE

Amapa, one of Brazil's least developed states, is home to about 800,000 people. Its fortunes could change dramatically if Petrobras begins production in the area, according to Luis. He hopes to use the royalties from the new plant to restructure the local economy.

The governor stated that while Petrobras operates out of Oiapoque during the exploration phase, it would require a second production base. The governor said that Santana and Calcoene, which are located far down the coast, would be the most likely candidates for this purpose.

Luis said that Oiapoque was surrounded by Indigenous land and environmental reserves, making it difficult to build a major logistic center.

Calcoene is a small town with about 11,000 residents located between Oiapoque, the state capital, and Macapa. It has plenty of space for development, and it's the closest Petrobras block to the other blocks in the area.

Luis said that Santana has a population of 118,000 and a logistics infrastructure which could be enhanced. He did not give a timeline for when the studies would be completed. Reporting by Fabio Téixeira, Editing by Brad Haynes, David Gregorio

(source: Reuters)