Portuguese 
Spanish 
Massive Capital Flight From Brazil – But Norwegian Companies Remain in the Oil and Gas Industry
Brazil may see a decline in foreign investment of up to 40% in the oil and gas industry in 2020; Norwegian companies are increasing their investments in the country even with Petrobras’ privatization.
Read Also
- More than 2,000 openings in free courses at Senac in regions of Maranhão
- Mason, Painter, Carpenter, Construction Helper, and Many More Job Openings in Civil Construction by Kemp Engineering
- Hydroelectric Plants and Their Main Challenges in the Brazilian Energy Matrix
It Was Very Stressful Weeks, Says Kjetil Solbrække, Former Head of Statoil in Brazil
He had just started his own oil and gas company and was buying his first oil fields when the corona pandemic hit him.
But the deal with the Brazilian state oil company Petrobras was implemented, and production from the fields in northern Brazil is already underway. The opportunities in Brazil are still great, says Solbrække.
-
Qantas and Airbus Invest in Company Aiming to Convert Unsorted Household Trash into Jet Fuel
-
Brazil’s ANP Opens 86 New Oil Blocks in the Equatorial Margin, Expanding the Amazon River Mouth Frontier
-
OPEC+ Boosts Oil Supply by 188,000 Barrels per Day in July 2026, Leading to Price Drop from $112 to $89 per Barrel in Under Two Months
-
TotalEnergies Signs 20-Year Deal to Purchase 2 Million Tons of LNG from Alaska, Boosting Project Viability
Petrobras Is Considered the Biggest Gateway to the Offshore Market in the World in the Oil and Gas Supplier Industry
Brazil is among the countries most affected by the corona pandemic in the world. This has led to a severe economic slowdown and a massive capital flight from the country. According to experts, there could be a decline of up to 40% in foreign direct investment in the oil and gas industry in 2020. However, the capital flight began even before the pandemic hit the country.
One of the reasons is that many investors are uncertain about where the controversial Brazilian president, Jair Bolsonaro, will lead the country. This applies, among other things, to his climate and environmental policy, which concerns international investors. Another reason for the capital flight is that authorities have drastically reduced interest rates. As a result, it is less profitable to have savings in Brazilian banks.
The Right Investment in the Oil and Gas Industry
Norwegian companies have heavily invested in Brazil. Excluding the EU and the US, this is the largest market for Norwegian investments abroad. More than a hundred Norwegian companies, including Equinor, Hydro, Aker Solutions, Statkraft, DOF, and Yara, are established in the country. Norwegian organizations state that it will not be Petrobras’ privatization that will make them abandon investments in Brazil.
