• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 41 mins Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 46 mins Theresa May to Step Down
  • 4 hours Old - New Kim: Nuclear Negotiations With U. S. Will Never Resume Unless Washington Changes Its Position
  • 8 mins IMO 2020 could create fierce competition for scarce water resources
  • 29 mins Is $60/Bbl WTI still considered a break even for Shale Oil
  • 3 hours India After Elections: Economy And Hindu Are The First Modi’s Challenges
  • 14 mins IMO2020 To scrub or not to scrub
  • 5 hours Total nonsense in climate debate
  • 2 hours Apple Boycott in China
  • 1 min Devastating Sanctions: Iran and Venezuela hurting
  • 11 hours Level-Headed Analysis of the Future of U.S. Shale Oil Industry
  • 13 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 227 days Epic Fail as Solar Crashes and Wind Refuses to Blow
  • 2 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

The World’s Biggest Oil Discovery Just Opened For Foreign Ownership

There’s a silver lining to the current downturn in oil prices. It’s bringing out some very good assets for sale.

And this past week saw a first-of-a-kind oil project come available — in one of the most important oil and gas plays to emerge globally over the last few decades.

The pre-salt of offshore Brazil.

The billion-barrel potential of Brazil’s pre-salt has been recognized for years. But getting into this big-upside play hasn’t been easy — given that blocks here were tightly controlled by Brazilian state developer Petrobras. With foreign operators generally confined to minority stakes in partnership with the major.

But on Friday, Petrobras did something it’s never done before. Sold a majority stake in a pre-salt block to a outside entity.

That was Norway’s Statoil. Which Petrobras confirmed has agreed to purchase a 66% stake in the BM-S-8 block — for total consideration of $2.5 billion.

This marks the first outright sale of a pre-salt project by Petrobras. Which up until now had been the majority owner and operator of this project — along with minority stakeholders including Portugal’s Galp Energy, as well as two smaller Brazil-based firms.

But the recent drop in oil prices is changing Petrobras’ attitudes towards its portfolio. With the company now aggressively looking to sell assets in order to pay down debt.

This project sale also comes as Brazil’s government has been seriously discussing opening the pre-salt up to a “concession model” of development. Where private operators would be able to bid on blocks like in many other parts of the world, rather than relying on partnerships with government.

This week’s sale is a sign that such steps toward opening the pre-salt are gaining momentum. Signalling that some big opportunities could be coming up here, for operators with the cash position to get into this big-money play. Watch for more project sales and license offers coming here.

Here’s to letting it go.

By Dave Forest

More Top Reads From Oilprice.com:

 




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News