• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 4 hours Rioting and Protesting
  • 10 mins The Downside of Political Correctness
  • 5 mins Trump waves a Bible
  • 1 hour George Floyd’s History
  • 10 hours US and Australia Sign SPR Lease Agreement
  • 2 mins Main Stream Media falls into depressed mood today after hearing the record May jobs report UP 2.5 MILLION JOBS !
  • 4 hours Let's try to link the recent events back to the situation with oil production and pricing
  • 23 hours Healing, Not Hatred
  • 4 hours In the Event of WW3, Oil and/or Renewables?
  • 13 hours China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 7 mins Coronavirus hype biggest political hoax in history
  • 10 hours China’s Oil Thirst Draws an Armada of Tankers
  • 20 hours Trumps Oil Industry....
  • 23 hours Let’s Try This....
  • 1 day Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
Dave Forest

Dave Forest

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

More Info

Premium Content

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


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




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