In March, US government officials asked Petrobras if the state-owned company could boost oil production after Russia’s invasion of Ukraine boosted global prices, three people with knowledge of the matter told Reuters.
According to sources, they returned empty-handed.
Petrobras officials said that production levels are a function of business strategy rather than diplomacy, and that a significant short-term increase in production would not be logistically possible.
“We are doing everything possible with our allies and partners to reduce the economic impact of Russia’s actions on other economies, such as Brazil,” a spokesperson for the US State Department told Reuters. Said.
“We are working with energy companies to increase their ability to supply energy to the market, especially as prices rise,” he said.
The spokesperson did not elaborate or comment on the meeting with Petrobras executives in March.
In a statement, Petrobras denied having had any conversations with “representatives of the US State Department”.
The company did not respond to a request for comment when asked if it had contacted any other US government agencies.
Washington is making a broad diplomatic effort to secure global oil supplies and keep prices under control after Moscow’s invasion of Ukraine.
US officials are trying to improve relations with the government of right-wing President Jair Bolsonaro (PL), despite disagreements over war and environmental policy in Ukraine.
Brazil is the ninth largest oil producer in the world.
US officials also urged domestic producers to increase production. In March, US Secretary of Energy Jennifer Granholm said the country was in a “race to war”.
Also in March, US officials traveled to Venezuela for the first high-level bilateral talks in years. The parties discussed the easing of some oil sanctions against the country.
Brazilian Mining and Energy Minister Bento Albuquerque told Reuters in April that he had met with Granholm twice to discuss the South American country’s role in keeping global oil prices in check. Some details of the talks emerged later.
At a meeting in March, US officials asked Petrobras if the company had the capacity to increase production in the short term, according to US government and Petrobras sources, who requested anonymity to discuss private conversations.
One source said initial contacts were made between the Brazilian and US governments, and Petrobras officials were consulted at an “unofficial” follow-up meeting.
According to three sources, Petrobras officials said such a move is not on the table due to strategic objectives and logistical obstacles.
However, these officials added that Petrobras has increased medium-term output as part of its announced plan to add 500,000 barrels of oil production per day by 2026.
Petrobras executives insist the company operates independently of the government, but the Brazilian state is by far the company’s largest shareholder.
source: Noticias
