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ExxonMobil sees potential for carbon cuts in Brazil

According to Juan Lessmann, the president of ExxonMobil Brazil, the US-based oil major is looking at its offshore Brazil operations as a means for reducing its overall carbon footprint.

The board at ExxonMobil, which also makes the Mobil industrial lubricant and grease ranges, is reported to be considering following the example of European oil majors in committing to net-zero emissions by 2050. It has already committed to reducing its emissions from oil and gas production, but large investors have been pressuring the company to go further.

Speaking at an event run by the Brazil-Texas Chamber of Commerce, which aims to facilitate friendship and business opportunities between Brazilian and American companies, Lessmann said:

“That’s the focus right now: reduction of emissions. Brazil brings a great opportunity for that.”

Lessmann explained that the pre-salt fields off the coast of Brazil contain higher quality crude oil. Combined with the use of efficient production technology, he said this meant oil could be produced with lower emissions.

The state-controlled oil company Petrobras has the rights to develop the largest offshore area, but Exxon has also acquired some 20 blocks, making it the second-biggest player in Brazil’s offshore oil industry. Indeed, the company now positions Brazil as a key location for expansion.

Brazil is conducting two further rounds later this year for further blocks, but Lessman did not indicate whether ExxonMobil would be participating in either of them. Two blocks are also being reoffered with lower bidding prices and better conditions.

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