(MENAFN) In a significant development, Brazilian President Lula announced in Dubai on Saturday that Brazil will be joining OPEC+, signaling the country's commitment to engaging with major oil-producing nations in preparation for an energy transition away from fossil fuels. The formal invitation for Brazil's participation was disclosed during a meeting of OPEC+, a coalition comprising 13 member states of the Organization of the Petroleum Exporting Countries (OPEC) and ten partner nations, including Russia.
During a roundtable discussion at the United Nations COP28 climate conference in Dubai, President Lula clarified that Brazil's entry into OPEC+ should not be confused with full membership in OPEC itself. Lula emphasized that Brazil aims to participate as an observer within the OPEC+ framework, drawing a parallel to his role when invited to engage with the G7. In this context, Lula highlighted his approach of listening and refraining from active decision-making until consensus is reached, drawing on his participation in the G7 summit in Japan last May.
While Jean-Paul Prats, the head of the Brazilian company Petrobras, stated that Brazil's role in OPEC+ would be that of an observer, ruling out adherence to production quotas set by the organization, Lula expressed his intention to play a significant role in discussions related to the energy transition. Lula stressed the importance of Brazil's participation in OPEC+, emphasizing the need to persuade major oil-producing countries to prepare for the eventual phasing out of fossil fuels.
As Latin America's largest oil producer, boasting vast offshore reserves, Brazil has been a noteworthy contributor to global crude oil production. Data from Argos Group reveals that in September, Brazil recorded crude oil production at a significant 3.7 million barrels per day, marking an impressive year-on-year increase of nearly 17 percent and reaching a "record level."
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