• 3 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 5 minutes Could Tesla Buy GM?
  • 11 minutes Global Economy-Bad Days Are coming
  • 17 minutes Venezuela continues to sink in misery
  • 4 hours OPEC Cuts Deep to Save Cartel
  • 4 hours What will the future hold for nations dependent on high oil prices.
  • 1 day End of EV Subsidies?
  • 11 hours Congrats: 4 journalists and a newspaper are Time’s Person of the Year
  • 6 hours Price Decline in Chinese Solar Panels
  • 8 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 12 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 21 hours Permian Suicide
  • 1 day GOODBYE FOREIGN OIL DEPENDENCE!!
  • 1 day Asian stocks down
  • 1 day Maersk's COO statment.
  • 1 day IT IS FINISHED. OPEC Victorious
Alt Text

OPEC Surprises Markets With Last Minute Deal

Oil markets appeared to have…

Alt Text

Qatar Quits OPEC

Prominent OPEC member Qatar has…

Dave Forest

Dave Forest

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

More Info

Trending Discussions

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.

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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