• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days Does Toyota Know Something That We Don’t?
  • 9 hours America should go after China but it should be done in a wise way.
  • 6 days World could get rid of Putin and Russia but nobody is bold enough
  • 8 days China is using Chinese Names of Cities on their Border with Russia.
  • 9 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 9 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 9 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 8 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 23 mins How Far Have We Really Gotten With Alternative Energy
  • 9 days Putin and Xi Bet on the Global South
  • 9 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 10 days United States LNG Exports Reach Third Place
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Major Oil Companies Make Moves in Megamerger Frenzy

Major Oil Companies Make Moves in Megamerger Frenzy

Several high-profile mergers among oil…

U.S. Drillers Pump The Brakes

U.S. Drillers Pump The Brakes

The total number of active…

Dave Forest

Dave Forest

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

More Info

Premium Content

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

ADVERTISEMENT

More Top Reads From Oilprice.com:

 


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News