The potential for bilateral energy expansion between Turkey and Brazil is evident with projections of $440 million in investments in energy infrastructure by 2026, Brazilian Ambassador to Turkey Eduardo Riccardo Gradilone Neto has said.
Speaking to state-run Anadolu Agency on March 7, Neto said trade relations between Brazil and Turkey have witnessed a rebound from $1.8 billion in 2016 to $2.2 billion in 2017.
“This result is attributed to the improved economic performance of both countries which, in 2018, should provide new opportunities for expanding trade and investment,” he added.
Energy sector cooperation is one of the areas that the economic and trade promotion sectors of the Brazilian Embassy are closely following, Neto stressed, adding that this is also a topic on the agenda of the Turkish-Brazilian Economic Cooperation Commission that meets periodically to identify trade and cooperation opportunities between the two countries.
Neto said the oil and gas sector is expected to absorb 71.4 percent of the $440 million total, 26.2 percent is anticipated for the generation and transmission of electricity, and the supply of biofuels is set to increase by 2.4 percent.
“The dynamism of the Turkish economy, which has grown at rates above the world average in recent years, and the Brazilian regulatory environment are parameters to guide the estimation of business expansion in the Brazilian electric power sector in the coming years,” he added.
Auctions are the main form of energy contracts in Brazil that are carried out openly with the participation of Brazilian and foreign companies. The winners are defined by offering the lowest tariff with the aim of promoting efficiency in the contracting of energy, Neto said.
“In the oil and gas sector, for example, the 14th auction round, held in September 2017, provided revenues of over 3.84 billion Brazilian reais (around $1.18 billion) in bonuses, according to the National Petroleum, Natural Gas and Biofuels Agency (ANP),” he added.
The ambassador noted that altogether 17 companies have amassed areas for exploration, of which seven are foreign companies.