Brazil October oil output near flat as subsalt output falls

miércoles 2 de diciembre de 2015 16:52 GYT
 

* Lula field decline leads to drop in subsalt output

* Subsalt losses wipe out rebound in Roncador field

* Weak output to crimp gov't tax revenue as oil price falls

RIO DE JANEIRO, Dec 2 (Reuters) - Brazil's oil output was little changed in October compared with September as production from the country's largest offshore subsalt fields fell, erasing gains from older fields ramping up output following maintenance, the country's oil regulator said on Wednesday.

Brazil produced 3.02 million barrels a day of oil and natural gas equivalent (boepd) in the month, 0.3 percent more than the previous month, ANP said.

The figures are seen as bad news for the government of President Dilma Rousseff, which is struggling to maintain tax revenue with the economy immersed in its deepest recession in 25 years.

Production in Brazil is less than two-thirds of the more than 5 million barrels a day (bpd) her government once said Brazil would be producing by now, limiting the giant royalty payments she promised would pay for healthcare and education.

World oil prices have also fallen to seven-year lows, limiting taxes on the crude Brazil produces. Output likely fell again in November after Petrobras suffered its worst strike in 20 years.

Declines in the Lula field, operated by state-run Petroleo Brasileiro SA in partnership with Britain's BG Group Plc and Portugal's Galp Energia SGPS SA, as well as reduced output from Royal Dutch Shell Plc areas negated the impact of a surge in output from Petrobras' Roncador field.   Continuación...