Brazil opening up the oil field

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Dan Grech: When you think of oil-rich countries, I have a feeling Brazil isn’t exactly near the top of the list. But Brazil is making a move to become a serious player in the oil business. Dan Grech reports from our America’s Desk at WLRN.

Dan Grech: While countries like Venezuela and Mexico shun foreign oil firms, Brazil is inviting them in.

Next month, Brazil’s state-run Petrobras will sell exploration licenses for nearly 40,000 square miles. It’s the ninth such offering to foreign oil firms since 1999.

Jorge Pinon: Petrobras is going to become one of the top multinational oil companies in the world.

That’s Jorge Pinon with the University of Miami. He says by 2012, Brazil could be Latin America’s largest oil producer.

Pinon: Pretty soon, you will see, in the United States, Petrobras-branded gasoline stations.

For now, Brazil is an unexplored frontier.

Out of nearly 3 million square miles with a potential for oil and gas, only 4 percent are under contract. One reason for that: Most of Brazil’s reserves are underwater, where it’s expensive and challenging to drill.

I’m Dan Grech for Marketplace.