• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 3 hours Science: Only correct if it fits the popular narrative
  • 3 hours Crazy Stories From Round The World
  • 6 hours What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 11 hours EU has already lost the Trump vs. EU Trade War
  • 1 day Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 4 hours China's Renewables Boom Hits the Wall
  • 1 day ''Err ... but Trump ...?'' *sniff
  • 6 hours Do The World's Energy Policies Make Sense?
  • 5 hours Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 5 hours Impeachment Nonsense
  • 1 day Tesla Launches Faster Third Generation Supercharger
  • 10 hours Water, Trump, and Israel’s National Security
  • 1 day Passerby doused with flammable liquid and set on fire by peaceful protesters

Breaking News:

Russia Plans To Boost Crude Oil Exports

Natural Gas Is Fighting For Survival

Natural Gas Is Fighting For Survival

Natural gas is considered a…

Brazil's $50 Billion Oil Boom Is Falling Apart

Brazil Oil Auction

Exxon may not be interested in stepping up to the bidding plate at Brazil’s massive $50 billion transfer of rights auction next week, because the oilfields up for grabs come with a hefty price tag, Exxon’s president of exploration, Stephen Greenlee said in an interview with Bloomberg.

Exxon, Greenlee explained, already holds licenses offshore Brazil, but when it bought those rights, the assets were far less expensive than what the Buzios oilfield is expected to go for this time around.

“Whether or not we participate, it would be wrapped up in how we would see that opportunity versus all the other investment options, because there are a lot of investment options out there right now,” Greenlee said, adding that Exxon wasn’t the only oil company with reservations about the high price tag.

Already Total SA, Repsol, and BP Plc have said they are not interested.

No doubt, Brazil’s auction is offering as close to a sure thing as you can get—but oil companies are worried that the high price tag of the rights would eat into any profits, shrinking it to less attractive levels.

Related: Protect The Oil: Trump’s Top Priority In The Middle East

For Exxon, who has gone gangbusters into Guyana, Brazil is not the last frontier. But it is not definitively bowing out of Brazil. Exxon will consider the opportunity, weighing it against available opportunities in US shale and LNG projects.

Brazil’s transfer of rights auction is scheduled to take place on November 6. Petroleo Brasileiro SA is intending to “bid to win” Buzios, which has been hailed by Exxon as the “largest and most prolific” deepwater discovery ever.

Next door to Brazil, ExxonMobil is currently pushing ahead with Hess on its Guyana Liza Phase 1 discovery, with hopes of achieving first producing there by December. The US oil major is also looking to increase its oil production in the Permian to 1 million bpd by 2024.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play