• 2 days Shell Oil Trading Head Steps Down After 29 Years
  • 2 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 2 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 2 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 2 days Venezuela Officially In Default
  • 2 days Iran Prepares To Export LNG To Boost Trade Relations
  • 2 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 3 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 3 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 3 days Rosneft Announces Completion Of World’s Longest Well
  • 3 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 3 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 3 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 3 days Santos Admits It Rejected $7.2B Takeover Bid
  • 4 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 4 days Africa’s Richest Woman Fired From Sonangol
  • 4 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 4 days Russian Hackers Target British Energy Industry
  • 4 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 4 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 4 days Lower Oil Prices Benefit European Refiners
  • 4 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 5 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 5 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 5 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 5 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 5 days OPEC To Recruit New Members To Fight Market Imbalance
  • 5 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 6 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 6 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 6 days GE Considers Selling Baker Hughes Assets
  • 6 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 6 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 6 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 6 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 6 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 9 days The Oil Rig Drilling 10 Miles Under The Sea
  • 9 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 9 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 9 days Italy Looks To Phase Out Coal-Fired Electricity By 2025

Here's A Big Casualty Of The Oil Price Rout

Here's A Big Casualty Of The Oil Price Rout

Big reports emerging in the oil space this week. Showing that the recent fall in oil prices is spurring some major project shuffling from the world's leading firms.

The company in question is Shell--which recent filings suggest is close to a deal to divest long-time holdings in one of its key oil-producing regions. Offshore Brazil.

The company will reportedly sell its 80% stake in the Bijupira and Salema fields to Brazilian operator HRT. The price tag for the deal wasn't disclosed, but is likely to be significant given that production from these projects runs more than 30,000 barrels per day. Related: Corruption Scandal Threatens Brazilian Oil Developments

This represents a sizeable disposition for Shell. Showing that the major is motivated to rationalize assets and raise cash in today's lower price environment.

Even more significant than the assets themselves is the location. With Brazil having been a high-priority operating region for Shell over the past decade.

But this deal shows that even this core area isn't immune to cuts today. In fact, the decision from the major may have a lot to do with the fact that momentum behind many Brazilian plays had largely stalled out--even prior to the recent slide in crude prices. Related: If Shell Backs Out, Arctic Oil Off the Table for Years

It's important to note that both of the fields involved here are not part of the pre-salt play that has attracted a lot of attention in Brazil the last few years. But nonetheless, this is one more signal that the country is losing some of its luster. A fall that's only going to be accentuated by the new realities in the energy space.

All of that said, it's encouraging to see a buyer like HRT waiting in the wings. With the smaller firm reportedly having secured financing from Glencore to make this purchase. Watch for more such deals emerging in Brazil, and other oil hotspots around the globe.

Here's to a crude awakening,
Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




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