• 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
  • 1 day Does Toyota Know Something That We Don’t?
  • 4 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 22 hours World could get rid of Putin and Russia but nobody is bold enough
  • 1 hour America should go after China but it should be done in a wise way.
  • 4 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 3 days China is using Chinese Names of Cities on their Border with Russia.
  • 4 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 3 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 9 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
  • 4 days Putin and Xi Bet on the Global South
  • 4 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 5 days United States LNG Exports Reach Third Place
  • 5 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Breaking News:

Chicago Files Suit Against Big Oil

Dave Forest

Dave Forest

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

More Info

Premium Content

Oil Majors Go All-In On This Emerging Hotspot

China continued to cement its growing resource relationship with Brazil this week. With reports emerging that a Chinese consortium will bid to construct a 1,100 km, $3.9 billion railway to transport grain from Brazil’s central-west region to the northern port of Miritituba. 

But even bigger things were afoot the past few days in Brazil’s oil sector. Where officials pushed through a last-minute judicial scare in order to pull off a historic bid round for offshore rights in the prolific pre-salt play.

As I’ve discussed at length, this was the first-ever bid round conducted since Brazil scrapped rules requiring state participation in pre-salt blocks. Making this the first chance international firms have had to bid on 100 percent owned projects.

The prospect of foreign ownership didn’t sit well however with Brazil’s leftist Workers Party. Who filed a court injunction last Friday morning — causing a judge to order a halt to the pre-salt bid round, just hours before it was supposed to start. 

Government officials scrambled and managed to get the injunction lifted — paving the way for bidding to take place later that day. 

And the results were impressive. 

The winning bidder list was a who’s who of global oil: with Shell, BP, ExxonMobil, Total, Repsol, Sinopec, CNOOC, Qatar Petroleum, Statoil, and Galp all grabbing winning bids. Even Brazil state firm Petrobras picked up acreage — through bidding, rather than by default as in the past. 

That represents one of the most internationally-diverse rounds of awards seen anywhere in the world recently (with Russia being the only notable geographic absence). Showing that Brazil’s new oil rules are working in drawing renewed interest to the country.  Related: Analysts Raise Oil Price Forecasts

All told, regulators awarded 6 of 8 blocks being offered. With officials saying that signing bonuses will total nearly $1.9 billion — and total investment will likely come in just under $31 billion. 

That’s a major victory for this former oil giant, which had been slipping in the international scene the last few years. Watch for knock-on interest in future planned bid rounds, and for some new and significant discoveries likely coming in the revitalized sector here. 

Here’s to everyone coming to the party.

ADVERTISEMENT

By Dave Forest

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