Petrobras, Brazil's natural gas company, will pump gas from a reopened offshore oil well

Petrobras, the Brazilian oil giant, is planning to reopen an oil well that was closed in its offshore Roncador oil field to obtain natural gas quickly. This decision was made by the company's CEO on Thursday.

Magda Chambriard, the Chief Executive of Magda Energy, told reporters that the well located northeast of Rio de Janeiro could begin producing as soon as next year. It would supply approximately 1.7 million cubic metres per day when it is brought on line, she said.

This is the first major move made by the state-run gas producer to supply Latin America's largest economy with additional natural gas.

The government of President Luiz inacio Lula da So has made it a priority to lower the cost of energy for consumers and industries.

Chambriard who was appointed earlier this year noted that his firm had scanned the region in search of gas in the short term. He cited the reopening the Roncador as an example.

The executive said that Petrobras would lower the price of jet fuel by almost 10% in October. It also stated that it will reduce the motor fuel prices, but did not specify a timeline.

Petrobras, in a press release issued shortly after Chambriard made his statement, announced that the price of jet fuel would be reduced by 9% for the month ahead.

Chambriard said that he would reduce the price whenever he saw that it was possible.

She said that Petrobras is likely to release its next five year investment plan in November. Reporting by Fabio Téixeira, Marta Nogueira and Rodrigo Viga Gaier, Editing by David Alire Garcia, Aurora Ellis

(source: Reuters)