Brazil declines Iran’s invitation to join OPEC, favouring “other priorities”
06 Sep 2008
After Indonesia quit the Organisation of Petroleum Exporting Countries (OPEC) on declining crude production earlier this year, and Angola and Ecuador admitted into the rarefied group, another name was being mentioned to be part of the cartel which accounts for more than 40 per cent of the world's oil supply - Brazil. See: Declining production forces Indonesia to quit OPEC
In fact, yesterday it was reported that, Iran, one of the largest members of the 13-strong OPEC had extended a formal invitation to the South American nation to join their fold. However, Brazil has declined Iran's invitation to join OPEC, but could join the cartel in the future, the country's mines and energy minister said on Thursday. See: Iran invites Brazil to join OPEC
Minister Edson Lobao said that he received a formal invitation from Iranian Ambassador Mohsen Shaterzadeh to join the cartel two weeks ago. As a member of the oil cartel, Iran can recommend Brazil's entry.
The minister said he thanked the ambassador for the invitation, but told him that "right now ... we have other priorities." He did not rule out the possibility that Brazil could join in the future as the nation develops offshore finds that are expected to turn it into a major oil exporter.
Brazil's state oil company is beginning production of deep-water finds off the Rio de Janeiro coast that analysts say could hold up to 55 billion barrels of oil. In 2006, Brazil was the world's 13th-largest oil producer, according to the most recent data available from the US Department of Energy. See: Brazil's energy producer Petrobras on $112.7 billion expansion
The minister said that OPEC members believe Brazil will in the future be one of the largest oil producers worldwide. In June, Lobao made similar claims based on the fact that Brazil was asked to attend a meeting of oil producer and consumer nations in Jeddah. "The simple fact that we were invited for an emergency meeting means, in my view, OPEC intends to invite us to join, if not now, then in the short run," Lobao had said.
