Page 13 - LatAmOil Week 09 2021

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However, it is likely to irritate Bolsonaro – partly with respect to the contentious issue of fuel
because it marks the fourth price rise for diesel pricing, a move that some observers have inter-
and the fifth price rise for gasoline since the preted as a sign that the government wants to
beginning of 2021 and partly because the presi- loosen the link between domestic prices and
dent is trying to placate truckers, who have been world markets.
complaining about increasing diesel prices. The announcement of Castello Branco’s dis-
The price increases appear to have been Bol- missal has inspired four independent members
sonaro’s main motivation for deciding to dismiss of the NOC’s 11-person board of directors to
Roberto Castello Branco from his position as resign in protest. It has also led industry experts
CEO of Petrobras, effective March 20. Castello to raise questions about the fate of Petrobras’
Branco is due to be replaced by Joaquim Silva e planned privatisation of eight refineries, on
Luna, a reserve general in Brazil’s armed forces the grounds that excessive state interference in
who has no experience in the oil and gas sector. petroleum product pricing might affect inves-
Luna has indicated that he will seek “balance” tors’ interest in the oil-processing plants. ™

URUGUAY
ANCAP hopes to diversify into

green hydrogen production

URUGUAY’S national oil company (NOC) that gas for its refinery in Montevideo. Addi-
ANCAP has said it wants to diversify its busi- tionally, he indicated that his company would
ness by investing in green hydrogen production. be willing to make a site that it owns available
ANCAP, according to its chairman, Ale- for use in a hydrogen project under a lease or as
jandro Stipanicic, is drawing up plans for a a contribution in a joint venture.
hydrogen fuel test project and will present it to Uruguay is not currently a producer of
potential investors in the near future, perhaps crude oil or natural gas; instead, it depends
as soon as the end of March. ANCAP hopes to on imported fuels. However, it also has abun-
choose at least one partner for this project by dant wind, solar and hydropower generating
late 2021 through a competitive tender, he told capacity, and it hopes to use these resources to
Bloomberg in an interview. generate the electricity needed to split water
Stipanicic did not reveal the value of the pro- molecules to produce green hydrogen. Since it
ject under consideration. He acknowledged, is already producing more power than it needs,
though, that ANCAP would have to take a “cre- with 93% of total output derived from renew-
ative” approach, since it had a limited budget for able resources (sun, wind, biomass and hydro-
hydrogen research and had reported losses for power), electricity from new facilities could be
six out of the last 10 years. As such, he said, the reserved for hydrogen production.
company expects privately owned investors to Stipanicic pointed out that Uruguay had the
lead the way on this front. potential to do more than just produce hydro-
“The idea is for ANCAP to have some sort gen. The country is also home to a deepwater
of participation [in hydrogen projects],” he said. port that could be used to facilitate hydrogen
“But we aren’t going to lead the investment. The exports, he said. “We are going to introduce
private sector will make the investment.” hydrogen as a source of renewable energy” for
He also pointed out that the NOC had some domestic use, he told Bloomberg. “But the big
experience with hydrogen, since it produced bet is hydrogen exports.” ™

ANCAP says it has a site available for a hydrogen project (Photo: ANCAP)

Week 09 04•March•2021 www. NEWSBASE .com P13