Brazil considering Iran offer of OPEC membership

Business Materials 4 September 2008 03:01 (UTC +04:00)

Brazil is considering a formal invitation from Iran to join the OPEC group of oil producing nations following its recent discovery of huge offshore reserves, Energy Minister Edison Lobao said on Wednesday. ( Reuters )

Lobao said Brazil had not yet responded to the invitation that came from Iran's ambassador two weeks ago, but that he saw no obstacles to Brazil becoming a member even though it is not yet a major oil exporter.

"He came to make a formal invitation. We are still evaluating," Lobao told reporters.

Brazil's state-controlled oil firm Petrobras shocked the oil world last year with the second-biggest oil find in 20 years.

It is part of an area 800 km (500 miles) long by 200 km (125 miles) wide off Brazil's southern coast that analysts say may contain a massive 80 billion barrels of oil.

If confirmed, the new reserves would vault Brazil into the world's top 10 oil producing countries.