Petrobras Aims to Cut Gas Reinjection, CEO Says

(Reuters) — Brazil's state-run oil firm Petrobras will do what it can to reduce the reinjection of natural gas into oil wells, Chief Executive Magda Chambriard said on Wednesday.

The government published a decree on Monday authorizing the oil regulator ANP to order oil companies to reduce the reinjection to increase the supply of gas and lower prices.

The rule will apply only to new wells, said Mines and Energy Minister Alexandre Silveira at the time.

"We will do everything possible," said Chambriard, adding that the reduction would only be feasible where it commissions new platforms. "On the (platforms) that are already there (in operation) and on those that are already being delivered, this will not be possible," she added.

Currently, Brazil has a large production of gas that comes to the surface as a byproduct of oil production.

The gas is often reinjected into the fields to maintain pressure, recover more oil and improve profitability.

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