Around the world, governments continue to loosen their hold on oil and gas reserves.
Just look at a slew of developments this week. Such as Russia finalizing a privatization plan for state producer Bashneft — which will see fellow Russian E&P Rosneft buy the government’s 50.8% stake for $5.3 billion.
That plan is a little murky in terms of private-sector involvement. Given that Rosneft itself is majority owned by the Russian government.
But another major spot in the oil and gas world is clearly opening for unprecedented private involvement.
Late last week, Brazil’s House of Representatives took a major step toward privatizing oil and gas development. By voting 292-to-101 to approve the removal of requirements that state firm Petrobras must participate in high-impact pre-salt oil projects.
Up until now, Petrobras by law was required to be a participating partner in all pre-salt blocks.
Guaranteeing that the Brazilian government would own an interest in each and every field.
But lawmakers have now recognized this stipulation as a critical barrier to investment. And have voted to remove it, in order to speed up exploration and development of new fields in the country.
That’s a major boon for private E&Ps. Who will be allowed to pursue pre-salt fields alone for the first time ever — representing a major opportunity in a play that’s yielded some of the largest discoveries in the world of late.
And the private sector is already putting this sentiment into action. With developers of the massive Libra oil field — including Shell, Total, CNPC and CNOOC — reported last week to be proceeding with a new tender for a floating production platform.
These players actually put the tender out last year — but at the time were hampered by rules requiring “local content commitments” in the bidding.
But those requirements have now reportedly been removed — allowing Shell and partners to proceed on a straight-up basis. Which should speed development of Libra’s 8 billion barrels of crude.
All of which suggests that a new face is emerging to Brazil’s petroleum sector. Watch for existing projects to move ahead quicker here — and for renewed interest from the private sector in upcoming bid rounds for new pre-salt blocks.
Here’s to letting ’em loose.
By Dave Forest
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To keep oil low, the Globalists need a way to manipulate prices at 'will' but without changing real physical supply. The IEA was ordered to fake a oversupply of 800,000 barrels per day for every single day In 2015. This kept prices low by design as they wait for these oil rich nations to default and at the same time trying to collapse Russia.
Any time oil could rise, like on an agreement in Algeria this week, they switch and use the 800,000 fake barrels supply on the fake draw down side of the equation to keep deals from being made and to keep prices down. No deals mean low oil for longer.
SA and Iran will make no deal and Kerry has already called Saudi and said look you do not have to make any deals because oil is being drawn down. In actuality, real oil levels have never changed in years. This is how they manipulate oil prices without modifying or jeopardizing the real physical supply of oil. It's paper oil.
This will guarantee no deal now or even in November, until these oil rich nations default on sovereign debt and the Western Globalist and IMF can get their oil assets by way of distressed sales and loans.
This is how the Globalist bankrupt nations and steal their oil. Only then, will oil rise as they now are on the receiving end of the revenue streams. At the same time they are acting on multiple data points as they slow down the Dedollarization process of the world by destroying as many BRICS nations as possible.
Warmest regards to all.