Minister of Mines and Energy Edison Lobao of Brazil

cutting imports to 19 million cubic meters.

purely a technical decision and not a political one.

million cubic meters starting Saturday.

Lobao said the ministry was studying the proposal and would likely forward a recommendation to President Luiz Inacio Lula da Silva in 60 days.

It would be a 100 percent state-owned company,' energy minister Edison Lobao said in an interview with business daily Valor.

Speaking after a meeting with Petrobras directors, Lobao said the 1997 law could be improved even if the recent discoveries in the presalt layer had not been made.

Lobao said that he favors a change from the present concession regulatory model to a production-sharing agreement in Brazil’s pre-salt and the creation of a second state-owned oil company similar to Norway’s Petoro.

China is offering Petrobras$10 billion to start.

was also interested in financing Petrobras' investments.

var RTR_ArticleBlurb = " BRASILIA, Sept 3 (Reuters) - Iran last month invited Brazil to join oil exporters' group OPEC, Energy Minister Edison Lobao said on Wednesday, adding that his government had not yet responded to the invitation.

would be reduced by 11 million cubic meters a day.

BRASILIA (Reuters) - Brazil’s state-run oil company Petrobras will increase its natural gas imports from Bolivia to 23 to 24 million cubic meters a day, Energy Minister Edison Lobao said late Friday, only days after cutting imports to 19 million cubic meters.

Lobao said the decision to increase the volume of gas imported from Bolivia from what was announced on Wednesday was purely a technical decision and not a political one.

Lobao said that the company will begin importing 23-24 million cubic meters starting Saturday.

Lobao said the price for now has not changed.

The simple fact that we were invited for an emergency meeting means, in my view, OPEC intends to invite US to join, if not now, then in the short run," Lobao had said.

Earlier this month, Lobao said Brazil would likely hold two auctions for oil and gas exploration blocks this year, but would exclude rights to blocks in the presalt layer until passage of a new regulatory law (OGJ Online, July 13, 2008.

In (Brazil's) subsalt region, there isn't this risk," Lobao was quoted as saying at a meeting in Lisbon.

Up to this point prices have been tolerated, but below where they are today the world runs the risk of undersupply, Lobao said in an interview today in London.

Lobao said a review of rules governing Brazils unleased pre-salt fields will be delivered to Lula in early January.

Lobao said OPEC members believe Brazil will in the future be one of the largest oil producers worldwide, adding that discussions about Brazil joining OPEC began months ago when Petrobras announced offshore deposits in pre-salt layers in the country, according to Latin America News Digest.

In an interview published Friday in local business daily Valor Economico, Lobao said the ministry was studying the proposal and would likely forward a recommendation to President Luiz Inacio Lula da Silva in 60 days.

barrels oilNEW YORK -- Brazil’s subsalt offshore reserves could contain as much as 150 billion barrels of oil equivalent and enough natural gas to turn the country into an exporter of the product, Energy Minister Edison Lobao said on Thursday.

Lobao said Chinese officials contacted his ministry to propose a loan and Petrobras then negotiated directly with the Chinese.

Lobao said the ministry has talked with a Japanese consortium, Canadian banks and various foreign oil service companies who want to invest in or work on offshore finds.

Lobao said investment would not be hurt as long as oil prices stay above $30 per barrel.

Lobao said that he received information from state-run oil company Petroleo Brasileiro SA indicating that the operational needs of two thermoelectric plants required increased imports of Bolivian gas.

Lobao said Bolivian officials, who met Friday with Brazilian counterparts, were unlikely to persuade Brazil to reconsider its decision.

Lobao said that Chinese officials contacted the Mines and Energy Ministry to propose the loan, but negotiations with China were conducted directly by Petrobras.

Brazil has rejected an invitation by Iran to join the Organization of Petroleum Exporting Countries (OPEC), Brazilian Energy Minister Edison Lobao said Sept.