Page 15 - LatAmOil Week 47 2020

LatAmOil BRAZIL LatAmOil

Petrobras is selling its stakes in Wahoo and Itapu (Image: PetroRio)

Imports from the US increased despite a back- After a slight rebound in August, Brazil’s base
drop of ongoing disruption along the US Gulf oil output declined in September, forcing the
Coast last month following a series of major country to rely on imports for a growing share
storms that started in August. Hurricanes this of its requirements. The country’s base oil out-
year threatened three of the four major US put slid to 195,601 barrels in September, down
Group II base oil suppliers, and up to an esti- from 215,715 barrels the previous month, latest
mated 40% of virgin production capacity was government data showed.
offline during that period. Between January and September, Brazil’s
US refiners have also kept their rates total base oil output dropped to 2mn barrels,
reduced in recent months because of ongoing down 23% from 2.61mn barrels during the same
weak demand for gasoline and diesel due to the period of last year.
coronavirus (COVID-19) pandemic that led to The drop is mainly down to the slowdown
oversupply. in production at state-controlled Petrobras’
Higher import volumes also contrasted with REDUC plant since February, as well as a shut-
a sharp decline in Brazil’s base oil production down at its RLAM refinery.
in the same period. Local Brazilian supply has These developments have forced Brazil-
been limited since June, driving an increase in ian domestic blenders to cover more of their
demand for US imports. requirements via base oil imports. ™

ARGENTINA
Argentina’s new Gas Plan offers

participants access to forex market

ARGENTINA’S Central Bank has said that nat- Argentine Republic approved the conditions for
ural gas producers taking part in the country’s free access to the exchange market of companies
new “Gas Plan” will have free access to the offi- that participate in the Plan for the Promotion of
cial foreign exchange market. Natural Gas Production 2020-2024,” it said.
Participating companies will be able to The South American country has had tight
tap the exchange market for the repatriation currency controls in place for more than a year,
of investments and income, as well as for the aimed at protecting foreign reserves following
maturities of debt for investments made as of a collapse in the peso, the national currency. As
November 16, the bank said in a statement. “The such, the incentive offered to gas operators rep-
Board of Directors of the Central Bank of the resents a new direction.

Week 47 26•November•2020 www. NEWSBASE .com P15