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Brazil troops deployed ahead of Rio oil field auction Brazil troops deployed ahead of Rio oil field auction
(about 4 hours later)
The Brazilian government has begun deploying troops on the streets of Rio de Janeiro ahead of a major auction for oil exploration rights.The Brazilian government has begun deploying troops on the streets of Rio de Janeiro ahead of a major auction for oil exploration rights.
Some 1,100 soldiers sealed off the seafront hotel, where the auction of the huge offshore Libra field is due to take place on Monday.Some 1,100 soldiers sealed off the seafront hotel, where the auction of the huge offshore Libra field is due to take place on Monday.
President Dilma Rousseff ordered tighter security after violent demonstrations in Rio last week.President Dilma Rousseff ordered tighter security after violent demonstrations in Rio last week.
Anti-government protesters have also threatened to march on the auction.Anti-government protesters have also threatened to march on the auction.
In scenes similar to country-wide protests in June, petrol and gas bombs were thrown last Tuesday after marches in support of striking teachers.In scenes similar to country-wide protests in June, petrol and gas bombs were thrown last Tuesday after marches in support of striking teachers.
The forthcoming auction of the Libra deepwater oilfield, some 230km (140 miles) off the coast of Rio de Janeiro, added to the tension.The forthcoming auction of the Libra deepwater oilfield, some 230km (140 miles) off the coast of Rio de Janeiro, added to the tension.
'Immense wealth''Immense wealth'
On Thursday, oil workers launched a strike against the sale, disrupting production at more than 40 oil platforms and major refineries.On Thursday, oil workers launched a strike against the sale, disrupting production at more than 40 oil platforms and major refineries.
Eleven international oil companies are said to be interested in the oilfield but it remains controversial in Brazil. Eleven international oil companies are said to be interested in the oilfield and nine of them have so far reportedly paid the required registration fee.
Some critics say Brazil should protect the monopoly of exploration of its oil reserves. But the auction is not without controversy with some critics saying Brazil should protect the monopoly of exploration of its oil reserves.
But the government insists it is not privatising the country's resources.But the government insists it is not privatising the country's resources.
"We're taking over this immense wealth that lies under the sea and on land. It is not available to us if it stays where it is," Mines and Energy Minister Edison Lobao told AFP news agency."We're taking over this immense wealth that lies under the sea and on land. It is not available to us if it stays where it is," Mines and Energy Minister Edison Lobao told AFP news agency.
The unions say the Libra oilfield auction will damage national interests by allowing foreign companies to share production rights with state-run oil company Petrobras.The unions say the Libra oilfield auction will damage national interests by allowing foreign companies to share production rights with state-run oil company Petrobras.
On Sunday, the government said it had defeated 18 of 23 court actions lodged to prevent the sale from happening, at the Windsor Barra hotel in the Barra da Tijuca area of Rio.On Sunday, the government said it had defeated 18 of 23 court actions lodged to prevent the sale from happening, at the Windsor Barra hotel in the Barra da Tijuca area of Rio.
Other critics say the rules set by the government for the auction have scared off big players such as British Petroleum and Exxon for allegedly allowing too much state intervention.Other critics say the rules set by the government for the auction have scared off big players such as British Petroleum and Exxon for allegedly allowing too much state intervention.
Thousands of people stated their intention to join demonstrations via social media at protests near the Windsor hotel.Thousands of people stated their intention to join demonstrations via social media at protests near the Windsor hotel.
But the army says the area will be cordoned off.But the army says the area will be cordoned off.
The Libra field belongs to the Brazilian government's National Petroleum Agency (ANP) and is part of huge oil reserves discovered in 2010 under a layer of rock, sand and salt beneath the seabed.The Libra field belongs to the Brazilian government's National Petroleum Agency (ANP) and is part of huge oil reserves discovered in 2010 under a layer of rock, sand and salt beneath the seabed.
The discovery potentially doubles Brazil's known oil reserves.The discovery potentially doubles Brazil's known oil reserves.
The government expects Libra's production to peak at 1.4m barrels a day in a decade. The government expects Libra's production to peak at 1.4 million barrels a day in a decade.
The Libra field has estimated recoverable oil reserves of 8-12bn barrels, according to the National Petroleum Agency. The Libra field has estimated recoverable oil reserves of 8-12 billion barrels, according to the National Petroleum Agency.