A huge oil field in the Amazon could hold a key to solving Brazil’s energy woes
Posted May 07, 2018 08:51:08A giant oil field is being developed in Brazil’s Amazon Rainforest.
The massive field, known as the Algarve, is being called the “Silk Road” by environmentalists because of its location, which has a significant share of oil in it.
It is also the biggest natural gas field in Brazil, which could be an answer to the country’s energy crisis.
The area is a UNESCO World Heritage site, and has been under development since the 1970s.
Oil exploration in Brazil was suspended after the 2010 earthquake and subsequent subsequent government shutdown.
However, the government decided to restart the oil industry in the last two years after receiving public support.
The project, called the Algazaparabia field, has been described by environmentalists as the “silk road” for developing Brazil’s vast oil reserves.
A big field of the Algurabia is expected to contain 1.2 trillion barrels of oil and gas.
According to a statement from the Algalac oil company, the project will require a total of 50 billion barrels of new drilling technology and the creation of a new refinery in the region.
The company also said it would have to find another 5 billion barrels to cover the cost of the project, which is expected at $5.6 billion.
The government also wants to build an oil refinery in neighboring Paravel, which will require an additional $2.5 billion.
According the Algeria-based oil company Santos, the Algaacos project is the most important development for the Brazilian oil industry, and it has been working closely with the government to develop the oil and natural gas.
“Algazparcabia represents a new chapter in the exploration and development of the region, and will open new doors for the development of hydrocarbons in Brazil,” Santos said.
The Algajaras oil field was discovered in 2007 and has the capacity to hold up to 10 trillion barrels.
“It is a major oil field, it has the potential to produce up to a billion barrels per year, and the project has already generated almost $10 billion in revenue,” said Alberto Menezes, a member of the local community.
“If we can have a huge oilfield in the Algecao, it will create thousands of jobs and create a lot of wealth for the community,” he said.
Brazil is currently experiencing a global economic crisis due to its massive budget deficit and the country is struggling to maintain its massive oil and mining sector.
In addition to the Algasabia project, the country has also announced that the Alvarado and Algastas oil fields are also on the drawing board.
“The Algamas project will help in solving the regional energy crisis by generating more jobs and improving the economy,” said Paulo C. Santos, President of Santos Oil, in a statement.
The oil and minerals sector is the main source of Brazil’s budget deficit, with an estimated 8.5 trillion reais ($5.2 billion) coming from this sector alone.
The country has already cut spending and increased taxes on the oil sector, which currently accounts for almost one third of GDP.