• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 2 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 6 hours Washington doctor removed from his post, over covid
  • 6 hours Which producers will shut in first?
  • 35 mins WE have a suicidal player in the energy industry
  • 1 hour Real Death Toll In CCP Virus May Be 12X Official Toll
  • 4 hours Shale Legs
  • 49 mins How to Create a Pandemic
  • 58 mins The Most Annoying Person You Have Encountered During Lockdown
  • 4 hours KSA taking Missiles from ?
  • 10 hours Trump eyes massive expulsion of suspected Chinese spies
  • 13 hours Did Trump start the oil price war?
  • 18 hours Eight Billion Dollars Wasted on Nuclear Storage Plant
Alt Text

The Worst Oil Trades Ever Made

Wall Street is full of…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Dave Forest

Dave Forest

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

More Info

Premium Content

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:


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




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