• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 hours Reality catching up with EV forecasts
  • 18 hours Famous author Michael Crichton talks about the "Climate Change Religion" aka Feudalism 2.0
  • 6 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 12 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 12 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas

Brazil Sees Up To $1.4B Revenue From Oil, Gas Licensing In 2017

Brazil expects to reap up to the equivalent of US$1.4 billion from three oil and gas exploration licensing rounds this year, Brazil’s Energy Minister Fernando Coelho Filho said on Thursday.

The pre-salt exploration licensing round is expected to account for most of the expected revenues, with the government targeting to raise at least US$941 million (3 billion Brazilian reais), the minister noted. Brazil is working to slate the pre-salt licensing round for the first half of the year, compared to initial plans to hold it in the second half of 2017, he added.

ADVERTISEMENT

Brazil plans to fare much better this year compared to the previous oil and gas auctions of 2015 when few companies showed scant interest in exploring oil and gas opportunities.

ADVERTISEMENT

In October last year, Brazil’s Parliament passed legislation removing the requirement that state-held Petrobras be a participating partner in all pre-salt project areas. Up to that point, Petrobras by law was required to be a partner in all developments, guaranteeing that Brazil’s government would own an interest in every field. By removing the requirement for state participation, Brazil will now be allowing international exploration and production companies to bid for pre-salt oilfield development.

Even before that legislation was passed, Norway’s Statoil moved to acquire assets in the pre-salt layer, agreeing to buy from Petrobras a 66-percent stake in the Carcara field in the Campos Basin in a deal worth US$2.5 billion.

Earlier this week, energy consultancy Wood Mackenzie said in its global upstream outlook for 2017 that Brazil’s pre-salt, together with the Permian Basin in the U.S., would be the hot oil plays for development this year, with both areas having materiality and one of the lowest development breakevens worldwide.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

ADVERTISEMENT


ADVERTISEMENT


Leave a comment
  • Jonathan Pulliam on January 16 2017 said:
    Que nada.

    O Brasil seja incapaz de reformar o Petrobras.

    Alem disso, um preco de petroleo em baixo de US$ 50.00 nao e suficiente para interessar investidores estrangeiros que desconfiam em Brasil.

    O brazil cobre taxa de importacao de 250% para "capital equipment", que se tornar qualquer investimento estrangeiro numa especulacao "alto risco".

    Sacou?

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News