• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 3 hours Could Venezuela become a net oil importer?
  • 9 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 6 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 12 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 6 hours Why is permian oil "locked in" when refineries abound?
  • 3 hours Gazprom Exports to EU Hit Record
  • 2 hours Could oil demand collapse rapidly? Yup, sure could.
  • 4 hours EU Leaders Set To Prolong Russia Sanctions Again
  • 2 hours Oil Buyers Club
  • 5 hours Oil prices going down
  • 24 hours Teapots Cut U.S. Oil Shipments
  • 27 mins Saudi Arabia turns to solar
  • 20 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 6 hours EVs Could Help Coal Demand
  • 12 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 1 day Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
Alt Text

Gold Exploration Still Profitable When Done Right

While most mining investment in…

Alt Text

These Two Major Miners Are Giving Up On The Markets

When two major mining companies…

Dave Forest

Dave Forest

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

More Info

Trending Discussions

Petro-Banking

It's surprising who's buying oil assets these days.

Not major oil companies. As we've discussed, firms like Apache have been busy divesting projects globally.

Brazilian oil heavyweight Petrobras has also been selling off assets. Last week the company agreed to sell $380 million worth of oil blocks and pipelines in Colombia.

This follows closely on a bigger divestment, that saw Petrobras sell 50% of its African unit for $1.53 billion.

The really interesting thing was the identity of the buyer. It wasn't a major oil producer. Not even a junior E&P. The purchaser was a bank.

Brazil's Banco BTG Pactual ponied up the billion-dollar sum to buy Petrobras' African assets.

Such direct ownership of exploration assets is an unusual strategy for a big bank like BTG. But it's not a one-off. The bank has made direct ownership of commodities plays part of its growth strategy. It is also reportedly looking to buy mining assets in Africa in partnership with former Vale CEO Roger Agnelli.

This may be a sign of the times. With commodities markets having turned down, most traditional companies in the space are shunning expansion in favour of cash-conservation and asset rationalization.

But that may well be an opportunity for non-traditional buyers like BTG. Such companies today are able to shop for assets with little competition.

That strategy appears to be paying off so far. The African projects of Petrobras were reportedly originally slated for sale at $5 billion. The fact that BTG could eventually pick them up for $1.5 billion suggests the firm may be one of the only games in town on the buy side.

We'll see if this approach ends in profit for the bank. But buying low during depressed times has long been a recipe for making money down the road. It will interesting to see how many other non-traditional players are thinking the same thing in regards to the natural resource space right now.

Here's to seizing opportunities,

By. Dave Forest




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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