BNDES Study Indicates 6.8% Growth Compared to Previous Estimate Valid for the Period from 2018 to 2021.
The Recent Success of the ANP’s 16th Oil Auction led BNDES to revise (upwards) its forecast for the next 4 years regarding investments to be made in the country.
According to BNDES, a total of 1.1 trillion reais will be invested in the country in projects over the four-year period 2019-2022.
The announcement made by one of the largest project promoters in Brazil leaves the market very optimistic regarding economic recovery and the resumption of jobs.
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BNDES’s estimate for 2019-2022 represents an increase of 6.8% compared to the previous estimate made by the bank for the period of 2018-2021.
BNDES bases its findings on projects that are financed or not by it and found that 11 of them belong to the industry and eight to infrastructure. Investment during the period is expected to rise by 2.7% (in real terms), according to the bank.
Riding the Oil Wave
Navigating the wave of optimism that is beginning to sweep the national oil and gas industry, BNDES’s estimate is primarily supported by the ANP auctions.
It is worth mentioning that in the last ANP auction, held on 10/10, the union received the record already paid in signature bonuses for a round of concessions.
The recovery of oil barrel prices and the investments being made by oil companies now, in blocks that were acquired in rounds from 2017 and 2018, are also reasons for the increased estimates.
It is worth remembering that still in 2019, more precisely in November, we will have two more auctions, one for the onerous cession and the 6th sharing round of the pre-salt.
Regarding investments in the infrastructure sector, the forecast is very similar to the annual average of the previous period of 2018-2021.
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