Brazil confirms OPEC+ invite, minister says eager to join

Brazil hopes to join the OPEC+ group of oil-producing countries in January after a technical analysis of the charter for cooperation, the country's energy minister said on Thursday, although the nature of Brazil's participation remained unclear.

President Luiz Inácio Lula da Silva's office confirmed receiving the invite during his trip to Saudi Arabia, but said he had not formally responded.

The president's office and the mines and energy ministry did not say whether Brazil would participate as an OPEC+ observer or as a full participant in the group's shared production quotas.

Mines and Energy Minister Alexandre Silveira told his OPEC+ peers that Brazil was eager to formally enter the group at a future meeting in Vienna, after a technical review of its charter for cooperation.

"It's all set. But there is a phase of detailed analysis by our technical team of the document we just received, which is part of the protocol in Brazil," Silveira said in Portuguese during a virtual meeting, where his comments were met with a standing ovation from OPEC+ ministers.

In a statement, OPEC+ said it welcomed Silveira to the meeting, adding that Brazil "will join the OPEC+ Charter of Cooperation starting January 2024".

Brazil is the largest oil producer in South America, at 4.6 million barrels per day of oil and gas, of which 3.7 million bpd are crude.

State-controlled company Petroleo Brasileiro SA dominates crude production with 2.35 million per day, mostly processed in Brazil's refineries.

Shell PLC comes next with 411,000 bpd. It is followed by TotalEnergies, with 146,000 bpd; Petrogal, with 110,000 bpd; and CNOOC, with 74,000.

(Reuters)